AdvancedMAD Academy0:45Derivatives

You Cannot Buy the Index

VIX is a calculation, not a tradable asset, so every product tracking it holds futures — and inherits their roll cost.

0:45 · 6 scenes

This lesson is part of a MAD Academy plan.

What the Lesson Covers

  1. 0:00The VIX is a number, not an asset. You cannot buy it.
  2. 0:05What VIX measures. The volatility implied by S&P options over the next thirty days. A calculation.
  3. 0:14So what do the products hold?. Futures on the VIX, rolled continuously — which brings roll cost with them.
  4. 0:23The structural decay. The curve is usually upward sloping, so these products lose value over time by design.
  5. 0:32What they are for. Short holding periods around an event, not a position you leave alone.
  6. 0:40Read what the product holds, not what the ticker suggests.
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Educational content only. MadStockAlerts provides market commentary, research, and educational content. It is not personalized investment advice, and nothing here is a recommendation to buy or sell any security. Trading and investing involve substantial risk, including loss of capital. See the Risk Disclosure and Customer Agreement.
Educational content only. MadStockAlerts provides market commentary, research, and educational content. It is not personalized investment advice, and nothing here is a recommendation to buy or sell any security. Trading and investing involve substantial risk, including loss of capital. See the Risk Disclosure and Customer Agreement.
You Cannot Buy the Index — MAD Academy Training Video · MadStockAlerts