VTS Community


Rahul asks:  “Are the VIX futures back to normal now?


In this sense I’m just taking “normal” to mean the average range of values over time, and so my answer is no we are not back to normal just yet.

That volatility event in early February was not the one off kind that disappears as fast as it came.  There was definitely some follow through of fear in that one and it can take a while for things to settle down.  It was a while ago but recall the European debt crisis in 2011.  That event elevated volatility for quite some time before normalizing.  The same pattern happened later in 2015 which also lingered into the first few months of 2016.  It can take several months for market participants to work though it.  It does seem we’re heading in the right direction though so with patience we may see more normal levels start to occur with more frequency.

So what is “normal?”  Here are the M2:M1 VIX futures values since the SVXY launched in early October 2011.  Remember this is the gap between the front month and second month futures.  Positive values are called contango and negative values are called backwardation:



As you can see we’re just starting to see a small recovery here, but since SVXY inception we’re still in the bottom 1/4 of values so not quite normal just yet.

Current VTS Total Portfolio Solution Allocations

10% VTS Conservative Vol Strategy  –  Optional replacement for lower risk tolerance investors

10% VTS Aggressive Vol Strategy  –  Optional replacement for higher risk tolerance investors

50% VTS Tactical Balanced Strategy

20% VTS Iron Condor Strategy

10% VTS Discretionary Strategy

Temporarily paused:  VTS Tactical Volatility Strategy


Want to see our current positions and daily trade signals?

  Consider Subscribing   –   Free 2 week Trial for all subscriptions

  Sign up for the Awesome VTS Newsletter  –  Free 1 month access

The Volatility Advisor

Making volatility investable through education and active management

Limited Offer

Start your  FREE 2 Week Trial  Now

Gain full access to all 4 of our successful trading strategies for a full two weeks, absolutely free.

It's time to start growing your retirement fund