Tall_Short

Long VIX as a hedging tool

Long
TVC:VIX   Volatility S&P 500 Index
Good hedging opportunity as the global stock market rally stalls. The FED has a sobering outlook for the US and global economy as parts of the world reopen. The recent stock market rally, fuelled by FED and other central bank stimulus and fiscal policy, along with investors not wanting to miss out has added $22 trillion to global markets. Now with the growing concern that markets have got ahead of themselves and that there are rising Covid hospitalisations since reopening economies (https://edition.cnn.com/2020/06/10/healt...), using the VIX as a tool to hedge against further downside seems logical. As you can see on the chart, currently the price is near support. I believe 2020 is going to be a volatile year, not just because of Covid-19. There is also deteriorating US-China relations, Brexit as well as civil unrest in the US, which has sparked a global equality movement, which may only increase the likelihood of a potential second wave of the virus due to the lack of social distancing. The WHO has suggested a threat of a second wave in the US, from Latin America.(https://www.bloomberg.com/news/articles/...). Long VIX .

Comments

Entered again at pullback at 35....lets see where this goes....
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nailed it
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Tall_Short yavor91
@yavor91, thanks you mate. Placed an order at 26.5 and exited at 40. 65% profit :)

I see there may be future longs on the VIX in the future. Watch this space, cheers!
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