Points on vol.
1.) vol traders have moved to FX and swaptions, it is not guaranteed that you will make money.
2.) VXX is isn't as good a proxy as I would like correlation wise for VIX, use the actual options or futures.
3.) Use VIX calls to hedge long positions or speculate long volatility, however remember you are buying a derivative on a derivative on a derivative on a derivative. VIX plays need to be short term in nature or option based.
We actually did buy some VIX calls into the close yesterday to cover some of the left-tail, based on the contango structure of the futures it looks to be a better bet for a move than ES puts. Not 100% correlation with hedging because of the huge contango. If you wanted to try and play off the contango possibly try (XVIX US) but again I like the options 10000000% more than the ETN's.
On a side not we cleaned up some regionals and WFC today into year end. Still long JPM and NTRS for value and C for momentum.
1.) vol traders have moved to FX and swaptions, it is not guaranteed that you will make money.
2.) VXX is isn't as good a proxy as I would like correlation wise for VIX, use the actual options or futures.
3.) Use VIX calls to hedge long positions or speculate long volatility, however remember you are buying a derivative on a derivative on a derivative on a derivative. VIX plays need to be short term in nature or option based.
We actually did buy some VIX calls into the close yesterday to cover some of the left-tail, based on the contango structure of the futures it looks to be a better bet for a move than ES puts. Not 100% correlation with hedging because of the huge contango. If you wanted to try and play off the contango possibly try (XVIX US) but again I like the options 10000000% more than the ETN's.
On a side not we cleaned up some regionals and WFC today into year end. Still long JPM and NTRS for value and C for momentum.
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