5 Things Happen When a VX ETN Crosses the VIX
The VIX, VX Futures, and their derivatives are interesting because they all:
a) theoretically lag the S&P but sometimes don't, which is troublesome
b) serve as excellent S&P trend confirmation
c) are key and highly misunderstood mechanisms within the broader market fabric
d) are based on revised logic that assigns a number to "volatility" based on the weighted average put/call spread on the most out-of-the-money S&P futures contracts
They also provide near-perfect trading opportunities when certain thresholds are reached
Crossovers between the VIX and its ETN derivatives is one such threshold
5 Things Can Be Observed & Acted Upon When These Crossovers Occur
VIX
UVXYVIXY
a) theoretically lag the S&P but sometimes don't, which is troublesome
b) serve as excellent S&P trend confirmation
c) are key and highly misunderstood mechanisms within the broader market fabric
d) are based on revised logic that assigns a number to "volatility" based on the weighted average put/call spread on the most out-of-the-money S&P futures contracts
They also provide near-perfect trading opportunities when certain thresholds are reached
Crossovers between the VIX and its ETN derivatives is one such threshold
5 Things Can Be Observed & Acted Upon When These Crossovers Occur
VIXUVXYVIXYNota
To clarify, this has not happened yet. We were oh-so-close on Wednesday, but got "robbed" at the last minute, which led to a 50% reversal lol. Somebody's gotta fix the vix
Dagangan aktif
Now would be a great time to buy UVXY puts..
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.