Sherem
Long

LONG VIX play

TVC:VIX   Volatility S&P 500 Index
Folks we are just about to our buy zone in the VIX . Provided nothing crazy happens in the markets tomorrow. Once we start getting to this $9-$11 range. Buy VIX set a take profit and wait for it to spike up and get out.

You might have to hold on to this for a month or more. Who knows! You can buy the underlaying options or buy it as an ETF . Should be a solid play.

the chart lays it out that we get these spikes, just gotta wait for it.

Happy Trading,
-Sherem
Comment: up 10% in a day. Snaps.
Comment: Keep an eye on this VIX trade if you are in it, take some profits. Up 30% just today and more than that on the options.
Trade active: Bought Dec 18 2018 calls at a strike of 25.
Comment: getting some action here, if the market dumps next week this could be a huge trade. My premium was $1, it's going between $1-1.05, so around break even at the moment. We'll see what next week brings
Comment: We're up 25%+, looks like this is going to keep climbing for now
Comment: Folks, we're still holding on to this position. If we get a quick market dip this thing is going to rocket up fast. that's what we are waiting on. It's just a plus that we are in positive territory right now
Comment: No matter where you got in you should be in positive territory at this point. Tomorrow will be very telling whether we get out with a little profit or a ton if we get a massive spike.
Trade closed: target reached: Nice move at the end of day yesterday and today. 50% gains give or take. It might spike up if the market moves a lot towards the end of today, but the market is leveling off and time isn't on our side at this point which is the reason for the close.
All my posts are not intended as financial advice, just me sharing what i am doing with my research and positions. Don't stress, pick your points and don't use leverage.

Comments

Understanding that VIX is moving up, and will continue moving up, I have closed my current long positions, for example I had an investment in IXN (A tech ETF). My question is; which investment instruments go up when VIX move up? perhaps Gold or Oil? (I understand what you are recommending VIX index directly, but I am looking for more conservative investments)
Reply
Sherem emmanueltorresg
@emmanueltorresg, Since VIX measures volatility, there isn't really anything that moves directly up with it besides short S&P 500 ETF's and leveraged stuff like that. and even then, they just don't have the same spikes that VIX offers for trading.

Gold and oil will still track the market but rebound more after things cycle. IE: In 2008-09 gold cycled down hard, then rebounded 3x faster than anything else. My trade of the year was silver for a long term play. Bought at $11.50, sold half at $24 and let the rest run.
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What is your approx level you are looking to take profits on this? I agree with the synopsis and reasoning...
Reply
Sherem JeffreyPadgett
@JeffreyPadgett, i would look to get out pretty quick at $15-18 area if it goes up there and just hold until it hits there. The thing with the VIX is it can do an insane spike in a day. Like go from 10-20 or 30 over night, if it slowly wanders up to $15, I would be more inclined to book profit and wait for it to cycle again. You could hold out for larger moves, but any time you trade the VIX you have to pay to hold it. Whether it's time decay as an option or the expense ratio on the ETF
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@Sherem, thank you sir! Figured it was for a quick pop/portfolio protection, mainly looking at DITM options on this with exp of about 6 months out
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I agree with you very much.
can you Follow Me?
I hope we can have more communication in the future.
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