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Well this played out well, I was able to clear over $1.6 million dollars. As you can imagine, yesterday was a very stressful day for me. Took the day off today and going to relax. Thanks for the help guys!

Bump. Any other responses?

Let's set aside the discussion of whether VIX will actually fall in a month and focus on the best way of profiting from this theoretical drop in volatility. Would you prefer to get puts on VIX futures or calls on SVXY? And why?

So what you mean by the last part is that, VIX futures are so expensive far out (I.e. they are pricing in the return to normal) that time decay (loss of extrinsic value purchased) will mean you can’t really profit unless it goes to normal even faster/lower than the market predicted?

What I got from perusing this thread is that because you can't really buy and hold the VIX at 'spot' and your position will decay with the passage of time which will cut into your bottom line and probably make this trade unprofitable as you wait things to stabilize. Right but had XIV not been...

That’s true for shorting in general. Are you saying to never short anything with your own money?

Unrelated, but one question about that...I get how the investors got wiped out when vol spiked feb 2018. But wouldn’t they have recovered their money had credit suisse and nomura not shut down the etf products? I mean VIX did fall back to earth in the subsequent months...

Can you expand on why it’s not a good idea in your opinion?

So leaving aside the issuing of rebalancing and taking a non leveraged inverse VIX ETF, you basically agree that it can yield about 40% return in 18-24 months conservatively if a new normal is established (or the old one returns...), with the obvious caveat I could be under water for some time?

Excellent perspective so far. IMHO, you can make a 10-15% selling options if you do it correctly. Beyond that, you are asking to be wiped out. I wrote some pretty far out put spreads on AAL this past Wednesday as premiums were juicy. Got wiped out the following day as the crash it :) P.S. you...

Looking at the trends, VIX tends to float around the 10-15% marks with spikes whenever outlier events occur. Given it's elevation right now, it seems logical that it will fall back to earth in the next 18-24 months as the the situation improves, or at the very least, a new normal is...