VIX Structure
VIX structure is a great indicator to plan upcoming Volatility events.
I created this chart to identify entry points for future events that may cause volatility in market indexes.
When VVIX6M-VIX9D is above 6 you can find better lower premiums on PUTs to enter a position for a future event.
During the peak IV of the event I cash in.
Before the event I look for cheap UVXY Puts at the end of an event when IV comes down, but VIX price is still higher than normal.
I then use those puts for a carry trade of UVXY shares.
As UVXY declines as its designed to do, I roll the puts either vertical or diagonal to cover the cost (UVXY going down + Margin Cost) of the carry trade.
When the event occurs sell the UVXY shares at the top, and sell the puts when VIX comes back down but IV is still high.
Not Financial Advice. Just a 007 trade journal.
I created this chart to identify entry points for future events that may cause volatility in market indexes.
When VVIX6M-VIX9D is above 6 you can find better lower premiums on PUTs to enter a position for a future event.
During the peak IV of the event I cash in.
Before the event I look for cheap UVXY Puts at the end of an event when IV comes down, but VIX price is still higher than normal.
I then use those puts for a carry trade of UVXY shares.
As UVXY declines as its designed to do, I roll the puts either vertical or diagonal to cover the cost (UVXY going down + Margin Cost) of the carry trade.
When the event occurs sell the UVXY shares at the top, and sell the puts when VIX comes back down but IV is still high.
Not Financial Advice. Just a 007 trade journal.
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