For some reason Vix is down around 5% today, while UVXY is only 2.5%.
I sort of understand that one is futures based and the other isn't but then this really doesn't make sense to me:
VIX options IV is reaching 200%.
UVXY options are below 100%.
Can anyone explain how a leveraged volatility trackers option IVs are much lower than what it is supposedly tracking? I am sure I'm missing something or don't understand options enough to understand this.
If anyone knows of a good strategy for hedging the market, that's what I am trying to do!