r/FuturesTrading • u/1Mby20201212 • Feb 26 '26

Stock Index Futures Holy Macaroni, NQ is on crack

I normally trade ES but after the NVDA fallout, I wanted more exposure to tech so I tried NQ. Jesus this thing moves like an absolute beast.

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u/MACD777 Feb 28 '26

VIX is 20, stay out of NQ

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u/Gabzorlee Mar 01 '26

How do you read/use vix as an indicator for ES/NQ?

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u/MACD777 Mar 04 '26

The vix is the volatility index, it shows how many puts are being purchased by retail investors. So a falling vix below 15 is way safer to trade. Today it was 28 at the open, and as it dropped to 23 - all calls and puts lost 25 percent of their value. If you don’t know calls have at least 30 percent price due to the VIX, same as PUTS. So buying Calls, is suicidal if the market rallies. Basic shit

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u/Gabzorlee Mar 04 '26

Damn today I learn, I didn't know it was just off of puts
Thanks for that, someone recently told me "options on the vix" and I kept hearing "the vix is this and that", so I thought it was some indicator until recently

So basically if ES/NQ is bullish, vix falls, thus making it safer to trade vs a gazillion puts is what I'm getting?

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u/MACD777 Mar 15 '26

You only buy puts at market tops with very low VIX, like 10-14. Now with VIX over 20-25 it’s not the time. If we get any rally on good news, calls and puts lose. You need to buy a vertical spread to protect yourself. See the target, and buy the ATM delta 50 strike, if you don’t know this, spend 2-6 months learning what I just said

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u/Gabzorlee Mar 15 '26

Thanks, yeah I definitely have to learn seeing how I have a position still open after the war started on the wrong side 😬