VIX Apocalypse

Updated

: term structure suggests elevated volatility in the coming weeks/months. Welcome to backwardation. This is usually a good time to own since the carry is low & actually compensates you for owning volatility. The only issue is that spot needs to rise and needs to sell. Then will have an asymmetric payout. However, for now, without declining we're just waiting around at this point with slightly positive carry. If rallies now with backwardation occurring loses big time. The opposite will occur if declines.

Overall, a big move in either direction is incoming.

No point in trying to predict where this will land. I'm waiting for a breakout for an indication of where/how I will position.

Let price action decide.

#STUDY

Cheers

Trade active

is breaking out to the upside. I need to see a follow-through to increase my position.

Note

decided two days ago when it closed above the wedge. I want to empathize the prudence of patience.

My Twitter link is in my bio (it's also my username). Most of my updates will be there.

Welcome to the "Big Short 3.0"

VisionCodeX

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