observing the charts for uvxy and vixy and looking at the slippage over the past two years of the price due to contango and backwardation I'm forming a strategy to profit from both the sharp rise in the vix to come and the constant pressure on the price due to futures slippage.
Would it not seem reasonable to short say vixy at around 27 and just hold on until the price drifts to ~13?
There are few instruments that depreciate at such a speed. Imagine buying vixy 21st June '13 and cashing in twelve months later.
