Spearmanfx

VIX RISING vs S&P500 dropping ( Potential outcome)

Long
TVC:SPX   S&P 500 Index
"In order to prepare for the potential volatility ahead, Ms . Xu recommends investors buy VIX call spreads, an options strategy that involves purchasing call options at a specific strike price while also selling the same number of calls with the same expiration but at a higher strike — the level at which the contracts can be exercised." FROM WSJ
http://on.wsj.com/2kjSqT4


What is my point?

Just saying that bullish options are on the rise for VIX . This fear index have the potential to rise further. Dearest Donald Trump have created a path for it to rise further.

I have used a 55EMA to break the price into bullish / bearish bias in this case. I am expecting the VIX to rise to 14.0. Which means S&P500 is going to drop. ( inverse correlation)

I am not trading this but this gives me a better view on what USD is going to do and how it affects the overall forex markets.

Long VIX
Short S&P500

Comments