EBITDAtiger

Concerning Vix Patterns and a way to profit it from it

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EBITDAtiger 已更新   
TVC:VIX   恐慌指数
There appears to be a pattern forming that cycles and could signal a pop or swell in the vix. With the way the geopolitical landscape has been, I would assume it would be a pop based on a certain piece of news or an event. A swell would be more worrisome for the overall market. There was a great post here and I can't remember who posted it, forgive me, but they had a great explanation of how a vix pop is a buying opportunity, while a vix swell is a warning sign.

A cool way to play volatility is through investment vehicles such as VXX or UVXY. VXX is not levered while UVXY is levered to the vix by 1.5x. My preference is to play it with UVXY, but that's just me and my risk tolerance. I like to build up a position slowly as the chop continues all the while having a limit sell in for a reasonable level in order to catch gains on a red day if I'm not tuned in. The other cool part about using this as volatility dampener in your portfolio is that on those sh*t show days, you actually have some buying power to harvest with out locking in any unnecessary losses or having to harvest gains from one of your most beloved long-term holds or just a position that has not hit your price target yet.
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When the VIX drops this much this fast, it is a sign that the volatility is not entirely gone. Should be a good April and we should end the year higher but expect some chop mid-year.

Load up on UVXY if you like to live on the edge, VXX if you are of a calmer breed. Do so over time and make sure to set up limit sells at different strikes as you go along to ensure profits even if you are away.

*This is not investment advice, always do your own DD*

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