Hi, thx.... mostly understanding how VIX spikes is useful. No links, I've just used it for years w UVXY, earlier VXX Re black swans, I initiate new positions aftermarket for overnight hold then sell next day premkt. I daytrade it using ladders and OTO orders
Thanks! I have certainly noted how VIX spikes and then can slowly, or more rapidly, engage in a reversion towards the mean. At some point there will be a ripe situation for buying a uvxy put, but not yet!! Your overnight trade sounds intriguing, I would enjoy seeing an example if it ever fits for you. I could see me doing this using VXM futures as I gain more skill with these setups.
VIX is certainly perplexing many market commentators out there lately. What really strikes me about the VIX for the last several months is that there has yet to be a classic major spike caused by panic buying of puts. I believe the highest I recall seeing it has been around 36. It is more in a slow uptrend with backing and filling. Bear markets end when there is a blow off top of the VIX, and then there has been a major opportunity to buy puts on the VIX. For many months now, each time it looks like it may explode, there has been a sudden SPX short squeeze reversal seemingly caused largely by options dealers reversing their hedges, and there is a minor to moderate VIX selloff. So far I have missed monetizing them, but on the lookout for the next!