https://rightsideofthechart.com/vix-volatility-index-poised-for-explosive-gains/ Stock Trading, Investing & Market Analysis Thu, 09 Mar 2017 02:19:14 +0000 hourly 1 https://wordpress.org/?v=6.9.4 https://rightsideofthechart.com/vix-volatility-index-poised-for-explosive-gains/#comment-3140 Mon, 30 Jan 2017 15:37:01 +0000 http://rightsideofthechart.com/?p=174514#comment-3140 Samtrade77 – Sorry, I missed this question that you posted last week. There was quite a bit of discussion in the trading room following this post regarding the various proxies (ETN’s, futures, options & even the broad markets) to position for a move in the VIX. UVXY tracks short-term VIX futures. Sometimes the short-term futures rise more than the longer-term futures & vice versa.
Today, for example, the spot VIX ($VIX) spiked up over 19% shortly after the open so far while UVXY has only moved up about 12% so far & UVXY is 2x leveraged which make the underperformance even that much more pronounced.
Bottom-line is that trading the VIX can be quite complex & one should read up as much as they can on how it works in order to determine which VIX trading proxies to use. For example, one can not trade the $VIX (spot VIX), rather you must use a proxy such a VIX futures, options (which are options on the futures contracts, not the spot VIX) or ETNs which attempt to track the near, intermediate or longer-term VIX futures.
Due to the complexities & numerous options for trading the VIX, I typically don’t list the VIX or any trading proxies as official trade ideas but do pass along an compelling developments that I see for those that are experienced with the VIX & often trade it using one of the many proxies.

]]> https://rightsideofthechart.com/vix-volatility-index-poised-for-explosive-gains/#comment-3137 Thu, 26 Jan 2017 20:19:49 +0000 http://rightsideofthechart.com/?p=174514#comment-3137 How about trading UVXY? for same outcome

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