Trading volatility (VIX & Co)

E

earth_imperator

I'm thinking about switching to trading volatility-specific options only, like the options of VIX etc.
I already have UVIX Jan-2024 Short Puts opened. This UVIX seems to be new,
as it says "Inception Date 2022-03-28". This is an ETF.
Which other volatility-specific options are there worth trading for mid-term to long-term?
 
Last edited:
Why would you open "UVIX Jan-2024 Short Puts"? You do realize UVIX is an eroding instrument, correct?

I prefer UVIX over other products for swing trading IV.
 
Last edited:
stepandfetchit said:
Why would you open "UVIX Jan-2024 Short Puts"? You do realize UVIX is an eroding instrument, correct?
More...
The following chart of the past 6 months IMO does not indicate that it's an eroding one, though I've seen other such ETFs eroding (I think SOXS or SOXL)

UVIX.png


I prefer UVIX over other products for swing trading IV.
More...
What's your definition of swing trading? Short-term holding, up to a week or so?

Btw, my objective is not to hold it till the end, but close the position as soon as my target profit level gets reached.
I chose this b/c my scanner said so :)
 
Last edited:
You could try vxx. It wil not mimic vix 100% since it’s value is based on the front and next month options (30 day rolling), and ultimately by supply/demand which was visible a few months ago
 
Look at UVXY, which was identical in structure to UVIX prior to 2018, then it changed from 2X to 1.5X leverage. I was trading UVXY previously, and now have transitioned entirely to UVIX, which I prefer the extra leverage. -- switch Y axis to log scale for clearer view for "Max" duration.


For swings, I add short positions after the vol spikes, and try to reduce them before the next spike. Typically try to hold at least a week. Note, the instrument "SPVXSP.ID" (not tradeable) will provide a slightly longer historic view of how the instrument erodes (SPVXSP.ID has no leverage, so is a reduced downward slope -- but should help to understand what is occurring)
 
Last edited:
Zwaen said:
You could try vxx. It wil not mimic vix 100% since it’s value is based on the front and next month options (30 day rolling), and ultimately by supply/demand which was visible a few months ago
More...
I recall "the wheels falling off the wagon" for VXX some time back, where they ceased adherence to the management of the VXX price per the prospectus. -- I no longer trade VXX (I luckily switched over to UVXY prior to them screwing the pooch) -- They were a reliable instrument for many years. -- "https://thedalesreport.com/trends/vxx-halted-several-times-as-a-result-of-short-squeeze/"
 
Last edited:
stepandfetchit said:
I recall "the wheels falling off the wagon" for VXX some time back, where they ceased adherence to the management of the VXX price per the prospectus. -- I no longer trade VXX (I luckily switched over to UVXY prior to them screwing the pooch) -- They were a reliable instrument for many years.
More...
I would avoid those note based vix instruments . Lots of weird shit going on there just read up on jt
 
stochastix said:
I would avoid those note based vix instruments . Lots of weird shit going on there just read up on jt
More...
XIV, UVXY, SVXY, and latest was VXX that have encountered "Lots of weird shit going on there". Am concerned our inglorious politicians may be trying to deal the final death blow to these nice products!
 
You must log in or register to reply here.
Back
Top