Markets saw their first losing week in a month, driven by escalating tensions in the Middle East and fears of a strike on Iranian oil facilities. Despite this, strong economic fundamentals, positive GDP growth, and jobless claims offer a bullish outlook. The Federal Reserve is continuing gradual rate cuts, and seasonal trends point to a market recovery in November after a typical October dip. We hold positions to benefit from these patterns and expect the VIX to settle back to mid-teens levels soon.

Election Year Seasonality Calls for a Long VIX Position

Trade Idea

Black Swan Party

Tue September 3, 2024

Election Year Seasonality Calls for a Long VIX Position

Alpha isn’t just found—it’s created through market interaction. At Punk Rock Traders, we’re leveraging both variance premium and seasonality by balancing short VIX positions with a strategic long position. With the VIX poised for a seasonal spike in October and election volatility in play, we’re recommending the October 16th $16 VIX call option to hedge against previous short positions. Our recent VIX trades have been successful, and adding this long position aims to capitalize on anticipated volatility spikes and subsequent crushes.

Research

Option Ideas

Stock Lists

CBOE Volatility Index (^VIX) Option Idea

Trade Idea Mentioned in Reports

Israeli Response to Iran and Port Strikes Unlikely to Derail a Strong Bull Market

Election Year Seasonality Calls for a Long VIX Position

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