Started with monthly VXX Strangle 2 strikes wide. As volatility kicked in, sold off the profitable trade (a put) and then used the rest of the time to allow the bearish sentiment to kick in. the problem was a lot of times the option would be reach ITM (In-The-Money), but I would hedge by tightening up the strangle by adding another put once the direction changed....
There are two types of VIX or VIX product (i.e., VXX, UVXY, and SVXY) trades that I like: (a) "Term Structure" and (b) "Contango Drift" trades.
"Term Structure" Trades
"Term Structure" trades are only done in VIX, since only VIX has an underlying future (/VX) and a "term structure," with /VX futures prices generally priced at increasingly higher prices as...