Ready. Set. Go! … Ouch. Nothing feels worse for a trader than watching a trade go the wrong way. Instead of losing your cool, it’s time to reexamine things.
You can’t look into the future and figure out where price will go. But probability, earnings, dividends, and option prices can give you some valuable hints.
If you’ve traded /VX futures, you’ve likely run into the /VX basis. It can be confusing, so get to know it—what it is, how to calculate it, and why it moves the way it does.