Efficient Long Vol Strategies for a 1YR Timeframe: Your Thoughts?

K

killATwill

I'm curious about the most efficient method to go long on volatility over a one-year time horizon. Products like VXX and UVXY feel compromised by their structure, being too susceptible to theta-decay value drip when VIX futures are in contango. So they don't suit my preferences.

In my opinion, pure VIX futures come with inefficient margin requirements compared to index futures products.

Does anyone have thoughts on the most capital-efficient approach to executing a long equities-vol trade within a one-year time horizon?
 
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Non trader here...

If you have a little money, why not a leap (call or put), way out of the money on QQQ or SPY??

The volume will come on major moves...Play the direction, not the volume.
 
They don't run months past Sep in VX. Sep VX synthetic is 18.7 here. The SPX synthetic is trading at 4900.

SPX Mar24 vols are 14. You're going to be paying 18 for Jan25 vols (election impact).

The forward is 4900 cash. Short one synthetic out to Jan, short two puts at a strike you'd like to see pinned. Don't buy vol here. Roll nearby VX if you want to hedge it.

The Jan25 4500 straddle (marked to 4898) is trading 732 mid.

upload_2024-1-4_7-35-47.png
 
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Well excuse me...It's even used in business terms. See below...Cambridge "Business"

written abbreviation for volume. (Definition of vol. from the Cambridge Business English Dictionary © Cambridge University Press) Dec 27, 2023
 
Cabin1111 said:
Well excuse me...It's even used in business terms. See below...Cambridge "Business"

written abbreviation for volume. (Definition of vol. from the Cambridge Business English Dictionary © Cambridge University Press) Dec 27, 2023
More...


How do you trade volume? Trading involves adding to OI.

He used volatility and vol in the opening post.
 
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