Market completely craters and VIX was... DOWN?!

[KCalhoun]

I have seen quite a few threads over time whereby you made some excellent comments on various aspects of the VIX, and it is obvious you have spent some significant time and effort using it as a key trading vehicle.

If at all possible, could you direct me towards any key links you have found exceptionally useful on your VIX path in terms of gaining further Mastery of it? If so, thanks so much!

Also, do you ever use the VXM, the mini VIX futures? I aim towards using them more often as they have changed the tick size to $1 and some days are quite useful premarket.

I have noted you stated you usually have a long position in UVXY for black swans; how do you do this, I am curious!

Hi, thx.... mostly understanding how VIX spikes is useful. No links, I've just used it for years w UVXY, earlier VXX

Re black swans, I initiate new positions aftermarket for overnight hold then sell next day premkt.

I daytrade it using ladders and OTO orders

 

[Primal Trader]

Hi, thx.... mostly understanding how VIX spikes is useful. No links, I've just used it for years w UVXY, earlier VXX

Re black swans, I initiate new positions aftermarket for overnight hold then sell next day premkt.

I daytrade it using ladders and OTO orders

Thanks! I have certainly noted how VIX spikes and then can slowly, or more rapidly, engage in a reversion towards the mean. At some point there will be a ripe situation for buying a uvxy put, but not yet!! Your overnight trade sounds intriguing, I would enjoy seeing an example if it ever fits for you. I could see me doing this using VXM futures as I gain more skill with these setups.

 

[KCalhoun]

Thanks! I have certainly noted how VIX spikes and then can slowly, or more rapidly, engage in a reversion towards the mean. At some point there will be a ripe situation for buying a uvxy put, but not yet!! Your overnight trade sounds intriguing, I would enjoy seeing an example if it ever fits for you. I could see me doing this using VXM futures as I gain more skill with these setups.

Sure, always intriguing to talk VIX!

 

[Primal Trader]

Sure, always intriguing to talk VIX!

VIX is certainly perplexing many market commentators out there lately. What really strikes me about the VIX for the last several months is that there has yet to be a classic major spike caused by panic buying of puts. I believe the highest I recall seeing it has been around 36. It is more in a slow uptrend with backing and filling.

Bear markets end when there is a blow off top of the VIX, and then there has been a major opportunity to buy puts on the VIX. For many months now, each time it looks like it may explode, there has been a sudden SPX short squeeze reversal seemingly caused largely by options dealers reversing their hedges, and there is a minor to moderate VIX selloff. So far I have missed monetizing them, but on the lookout for the next!