Would it be wise to buy xiv only next wed when backwadation decreases?I am hoping the markets will fall on monday to catch xiv at maybe 9.50. Than once backwadation is gone, we can go to $15 in maybe 3 mths
Unless you want to day trade it, wait until the Aug. contract expires. Assuming the major volatility swings are gone, the spread between Sept. and Oct. contracts should be pretty narrow and backwardation will eventually subside.
Why would you buy XIV rather than shorting VXX where you can also short puts.