vix operates in 3 modes. its flat, inverted, and normal

-roughly 80% of the time vix stays in its normal state

-roughly 15% goes into an inverted/backwardated state

-roughly 5% it goes into a flat state.

- when vix goes inverted, its showing that the near term demand for protection is elevated

- this is why when markets tends to jump out the window down, but the escalator up

idea:

so there's 3 components that matter here, vix cash (vix index), vix futures month 1, vix futures month 2

the challenge:

vix normal : vix cash below vix month 1 futures but month 1 is less than month 2 (color green)

vix flat: vix cash slightly below or equal to vix month 1 but less than month 2 (color yellow)

vix backward: vix cash above vix futures month 1 (orange) but less than month 2. vix cash above vix futures month 1 and month 2 (color red)