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Term structure

Is the vol curve in contango or backwardation?
Term Structure — VIX Front-vs-Back

The VIX curve summarized as front-vs-back ratios: VIX/VIX3M and VIX/VIX6M. Below 1 is contango (upward curve, calm); above 1 is backwardation (front richer than back).

How Spot VIX divided by the 3-month and 6-month constant-maturity VIX, each built by Cboe with the same variance kernel applied to successive SPX expirations.Formula VIX / VIX3M, VIX / VIX6M (1.0 = flat)Source Cboe via Yahoo Finance — computed

vol_term_structure

How to read Read the present-state SHAPE — 'the curve is in backwardation right now' / 'the market is pricing higher near-term than longer-dated vol'.

Curve shape is DESCRIPTIVE. Cboe's own research shows backwardation does NOT reliably predict a down market — report the shape, never the prediction.

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