Anyone trade the VIX?

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#1 Fri, Jul 15, 2011 - 8:22pm
Dr Durden
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Anyone trade the VIX?

Looking at buy and hold trade on something like VIXY (ProShares short term futures ETF) basically on the fundamentals that the market, economy, etc suck and should be far more fearful of the future than currently is. 

Any other way to buy something like this other than on margin? Don't know of another ETF that tracks it...or other security for that matter? 

Thoughts on the idea of doing something like this in general? 

Edited by: Dr Durden on Nov 8, 2014 - 5:15am
Tue, Jul 26, 2011 - 1:32pm
Dr Durden
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VIXY hit it's YTD low at

VIXY hit it's YTD low at around $43 the other day.

If we get another surge of confidence that all is well in the world with a debt ceiling deal and this thing drops down to maybe $40 or so, do you think this would be a good long term play/hedge?

Got GIABO? "It's called the American dream, because you have to be asleep to believe it." ~George Carlin
Tue, Aug 9, 2011 - 6:05pm (Reply to #2)
Sabin
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Did you ever end up messing

Did you ever end up messing around with any of the VIX ETFs? I was just thinking about this today. Maybe short the VIX for a bit because "everything is all better now". It also seems like a good way to make yourself crazy, and lose at the same time. indecision

Tue, Aug 9, 2011 - 6:54pm
Dr Durden
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I missed it. Rode the SPX

I missed it. Rode the SPX down instead. I kick myself too, because it was easy money....up 60% in one week, 75% based on my lower target.

If it makes up for a majority of the gain on this relief rally then I might pick some up and hold till everything blows up again. The fat lady has not sang.

Got GIABO? "It's called the American dream, because you have to be asleep to believe it." ~George Carlin
Tue, Aug 9, 2011 - 11:35pm (Reply to #4)
Ratatouille
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Dr. Durden,...

Dr. Durden, I have just been wondering: what is GIABO?

Humbly,

The Rat

Tue, Aug 9, 2011 - 11:46pm (Reply to #4)
Sabin
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VIXY @ 62 or 54?

Last week VIXY was at 52. Today it closed at 67. If things are fake MSM normal for the next few days I think you could see a drop to 62-54 this week. If they are not, then make FRNs riding SPX or SPY down, right? Of course the news from Europe/Asia will be the leading edge into tomorrow. But if things are looking "rosy" I plan on throwing on some VIXY puts tomorrow morning.

Wed, Aug 10, 2011 - 12:02am (Reply to #5)
Dr Durden
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Ratatouille wrote: Dr.

Ratatouille wrote:

Dr. Durden, I have just been wondering: what is GIABO?

Humbly,

The Rat

Global Insurrection Against Banker Occupation. Max Keiser coined it a while back....and what do you know, the world is starting to adopt. 

Got GIABO? "It's called the American dream, because you have to be asleep to believe it." ~George Carlin
Wed, Aug 10, 2011 - 12:05am (Reply to #6)
Dr Durden
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Sabin wrote: Last week VIXY

Sabin wrote:

Last week VIXY was at 52. Today it closed at 67. If things are fake MSM normal for the next few days I think you could see a drop to 62-54 this week. If they are not, then make FRNs riding SPX or SPY down, right? Of course the news from Europe/Asia will be the leading edge into tomorrow. But if things are looking "rosy" I plan on throwing on some VIXY puts tomorrow morning.

Cool keep us updated.

I haven't studied it too hardcore, but it seems once the VIX goes above 40 historically, it goes parabolic to the upside. My thinking is that it's only a matter of time before a REAL global fear/meltdown occurs, this just being another warm up. Why waste a good catastrophe to rake in a little more fiat?

Got GIABO? "It's called the American dream, because you have to be asleep to believe it." ~George Carlin
Wed, Aug 10, 2011 - 5:37pm (Reply to #8)
Sabin
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Well I decided to do a little

Well I decided to do a little testing of some strategy in my virtual account (fake fiat is ever so much fun). I went with a long strangle. VIXY 65 Puts vs VIXY 85 Calls. 65 would be retracing back to August 4th levels, and 85 would be on the way to the VIX that was seen back in October 2008. Due to VIX moving very quickly it might be possible to sell both the puts and the calls for profits at different times depending on the market conditions. I probably picked too large of a range but it was purely for testing purposes. Tomorrow I may go with a tighter strangle to see if that yields more positive results. VIXY was up today but not enough to make the Calls worth anything and the Puts are just ugly now. Also the volume in VIXY is low enough that it takes a lot more to get the out of the money options to move much in price.

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