Vixy reaching new lows, time to buy?
- Thread starter IronFist
- Start date
Or better yet just invest in VIX futures directly. Unless you're really wedded to the equal tenor exposure of the ETFs they don't appear to have any benefits over directly investing in the two underlying securities they each invest in.
Remember it's the percentage increases/decreases on swings that count for traders (including daytraders) since you will rescale the position based on the most recent price. In terms of percentages the VIX complex is as volatile as it ever was (actually vol of vol has been going higher the last year AFAIK, though I haven't bothered personally checking as I didn't trade vol by ETF since 2017).
I wouldn't go long VIXY, UVXY, etc. in a discretionary trade even with a gun pointed to my head though. Short equity index is much more straightforward, you need really specialist knowledge to do well long volatility (or do some really short term holds).
Last edited:
You can't trade VIX spot. You can directly trade VIX futures and FOPs though. The VIX ETFs consist of the nearest two months of VIX futures, they just roll out of the near to the far every day to maintain an equal duration exposure.
Did not know there was UVXY.