Volatility trading

A VIX swap is a product that essentially isolates vol? I've heard of them, but not real familiar. Can you do them on any equity?

I guess what I was thinking of is simply a way to get long or short the curve, and I'm not really sure where that would be useful (other than basket vol strategies, like you pointed out).

Thanks,

- The New Guy

Quote from riskarb:

That would form the basis of a VIX swap or replication. Going long or short the strip vols. Useful for trading basket volatility strategies, but not something of great allure unless you're interested in hedging vol exposure and want a cheaper to deliver solution than buying otm skews.
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My largest holding -- SHLD is doing very well today -- I know I didn't post SHLD here but look at my post in regards to SHLD in the stocks forum a little while back.


I also bought MO today



SHLD and MO -- Bulllllish
 
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