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Tag Archive for: (XIV)

april@madhedgefundtrader.com

April 11, 2025

Diary, Newsletter, Summary

Global Market Comments
April 11, 2025
Fiat Lux

 

SPECIAL VOLATILITY ISSUE

Featured Trade:

(TESTIMONIAL)
(MAKING VOLATILITY YOUR FRIEND),
(VIX), (VXX), (XIV),

(THE ABC’s OF THE VIX),
(VIX), (VXX), (SVXY)

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 april@madhedgefundtrader.com https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png april@madhedgefundtrader.com2025-04-11 09:08:572025-04-11 10:10:55April 11, 2025
april@madhedgefundtrader.com

Making Volatility Your Friend

Diary, Homepage Posts, Newsletter

With the Volatility Index back down to a bargain of $16, I am getting deluged with emails from readers asking if it is time to start hedging portfolios one more time and buying the iPath S&P 500 VIX Short Term Futures ETN (VXX).

The answer is not yet, but soon, possibly very soon. And here is the anomaly in the market today. Volatility is not reflecting actual short-term movements in the S&P 500.

While we have seen several 200-point moves in the market in the past three weeks, the volatility Index (VIX) has spent only hours over the $20 level. That is because the ($VIX) measures anticipated 30-day volatility, and for the past 30 days, the overall net move in the market has been zero.

They are inquiring at absolutely the wrong time.

And here is the problem. When the (VIX) rises, it usually spikes straight up, and then right back down again. This time, it spiked but has since hung around the $20 level rather than collapse back down. That suggests that there is another leg up to go in volatility until it hits $50 or more before it takes a much-deserved break. That means the stock market has one more sharp selloff left before we hit bottom and bounce.

Markets can ignore trade wars, rising interest rates, rocketing interest rates, and international political instability (Gaza, Ukraine) for a while, but not forever. When the time DOES come to pay the piper, prices will fall and volatility will rocket.

So I am more than usually interested in hedging the downside risk for my trading book. A good rule of thumb is to let the (VIX) sit at a bottom for a week, and then go buy the (VXX). Two weeks is even better. That way, you can ignore expensive and unnecessary time decay.

Which all brings me to the subject at hand.

If you are new to the service and have no longs, you probably should skip this trade and just watch it as a learning experience.

This can also be a great hedge for any long positions we may want to add in the coming weeks, such as in “trade peace” or technology plays.

As I never tire of telling people, no one ever complains when they buy fire insurance and their house doesn’t burn down.

If you are new to this service, don’t freak out. My daily research newsletters are not always about exploring the esoterica of options, or volatility trading.

I’ll let you know when I’m ready to pull the trigger with a Trade Alert.

I am always trying to get better prices.

If you are new to the (VIX) game, please read the educational piece below.

 

 

 

 

 

https://www.madhedgefundtrader.com/wp-content/uploads/2024/10/John-Thomas-jackhammer.png 1174 812 april@madhedgefundtrader.com https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png april@madhedgefundtrader.com2025-04-11 09:04:532025-04-11 10:10:30Making Volatility Your Friend
april@madhedgefundtrader.com

February 11, 2025

Diary, Newsletter, Summary

Global Market Comments
February 11, 2025
Fiat Lux

SPECIAL VOLATILITY ISSUE

 

Featured Trade:
(TESTIMONIAL)
(MAKING VOLATILITY YOUR FRIEND),
(VIX), (VXX), (XIV)

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 april@madhedgefundtrader.com https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png april@madhedgefundtrader.com2025-02-11 09:06:582025-02-11 10:58:48February 11, 2025
Mad Hedge Fund Trader

January 18, 2023

Diary, Newsletter, Summary

Global Market Comments
January 18, 2023
Fiat Lux

Featured Trade:

(TESTIMONIAL),
(SHOPPING FOR FIRE INSURANCE IN A HURRICANE),
(VIX), (VXX), (XIV),
(THE ABCs OF THE VIX),
(VIX), (VXX), (SVXY)

 

CLICK HERE to download today's position sheet.

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2023-01-18 12:08:242023-01-19 10:58:04January 18, 2023
MHFTF

Shopping for Fire Insurance During a Hurricane

Diary, Newsletter

With the Volatility Index back down to a bargain $18, I am getting deluged with emails from readers asking if it is time to start hedging portfolios one more time and buying the iPath S&P 500 VIX Short Term Futures ETN (VXX).

The answer is no yet, but soon, possibly very soon.

They are inquiring at absolutely the wrong time.

And here is the problem. When the (VIX) rises, it usually spikes straight up, and then right back down again. This time, it spiked, but has since hung around the $20 level all year rather than collapse back down.

That suggests that there is another leg up to go in volatility until it hits $40 or more before it takes a much-deserved break. That means the stock market has one more sharp selloff left before we hit bottom and bounce.

Markets can ignore trade wars, rising interest rates, the Ukraine War, and international political instability in Taiwan for a while, but not forever. When the time DOES come to pay the piper, prices and volatility will rocket.

Which all brings me to the subject at hand.

If you are new to the service and have no longs, you probably should skip this trade and just watch it as a learning experience.

This can also be a great hedge for any long positions we may want to add in the coming weeks, such as in “peace,” or technology plays.

As I never tire of telling people, no one ever complains when they buy fire insurance and their house doesn’t burn down.

If you are new to this service, don’t freak out. My daily research newsletters are not always about exploring the esoterica of options, or volatility trading.

I’ll let you know when I’m ready to pull the trigger with a Trade Alert.

I am always trying to get better prices.

If you are new to the (VIX) game, please read the educational piece below.

 

 

 

https://www.madhedgefundtrader.com/wp-content/uploads/2018/09/JohnThomas-Sept20-e1537393647191.png 327 224 MHFTF https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png MHFTF2023-01-18 12:04:512023-01-18 13:40:40Shopping for Fire Insurance During a Hurricane
Mad Hedge Fund Trader

March 30, 2022

Diary, Newsletter, Summary

Global Market Comments
March 30, 2022
Fiat Lux

Featured Trade:

(TESTIMONIAL),
(SHOPPING FOR FIRE INSURANCE IN A HURRICANE),
(VIX), (VXX), (XIV),
(THE ABCs OF THE VIX),
(VIX), (VXX), (SVXY)

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2022-03-30 09:08:522022-03-30 17:13:27March 30, 2022
Mad Hedge Fund Trader

July 20, 2021

Diary, Newsletter, Summary

Global Market Comments
July 20, 2021
Fiat Lux

Featured Trade:

(SHOPPING FOR FIRE INSURANCE IN A HURRICANE)
(VIX), (VXX), (XIV)
(THE ABCs OF THE VIX)
(VIX), (VXX), (SVXY)

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2021-07-20 09:06:042021-07-20 16:29:14July 20, 2021
Mad Hedge Fund Trader

September 17, 2020

Diary, Newsletter, Summary

Global Market Comments
September 17, 2020
Fiat Lux

Featured Trade:

(SHOPPING FOR FIRE INSURANCE IN A HURRICANE),
(VIX), (VXX), (XIV),
(THE ABCs OF THE VIX),
(VIX), (VXX), (SVXY)

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2020-09-17 09:06:492020-09-17 09:42:18September 17, 2020
Mad Hedge Fund Trader

September 5, 2019

Diary, Newsletter, Summary

Global Market Comments
September 5, 2019
Fiat Lux

SPECIAL VOLATILITY ISSUE

Featured Trade:

(SHOPPING FOR FIRE INSURANCE IN A HURRICANE),
(VIX), (VXX), (XIV),
(THE ABCs OF THE VIX),
(VIX), (VXX), (SVXY),

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2019-09-05 04:06:302019-09-05 03:34:40September 5, 2019
MHFTR

May 16, 2018

Diary, Newsletter

Global Market Comments
May 16, 2018
Fiat Lux

Featured Trade:
(THE LAWSUITS ARE PILING UP ON THE XIV),
(XIV), (VXX),
(KISS THAT UNION JOB GOODBYE),
(TESTIMONIAL)

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 MHFTR https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png MHFTR2018-05-16 01:09:242018-05-16 01:09:24May 16, 2018
Page 1 of 212

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