/biz/ - Business & Finance

>>50976661
haha shows what you know. Futures prices are always somewhere between VIX and the furthest future, which doesn't move much no matter what VIX does unless there's a long term change. So if VIX goes up to let's say 50, the furthest future contract will remain priced at 28, maybe 29, and every other contract will be between those two. So if VIX is at 50 but the nearest contract has a few weeks to expire it might not even reach 40, and that's because the market expects VIX to come back down by expiry, that's why all future contracts become closer to the expected future mean as their expiry becomes more distant.

See VIX is the red line, and futures are the other one. They get closer to the red line until they meet and expire, so the red line is always the lowest or the highest. No matter what happens that means the future contracts can't swing as much as spot VIX.