Trade IdeaBlack Swan PartyTue, Oct 8It’s Time to Short the VIXThe Volatility Index (VIX) presents profitable opportunities for those who understand its recurring patterns, especially during election cycles. Current geopolitical tensions and upcoming election uncertainties have caused a spike in the VIX, but much of this is technical and should ease post-election. Historically, the VIX tends to drop in October and beyond.
Trade IdeaFreeBlack Swan PartyTue, Sep 3Election Year Seasonality Calls for a Long VIX PositionAlpha 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.
FreeBlack Swan PartyTue, Aug 20Using Financial Weapons of Mass DestructionDerivatives, often labeled as ’financial weapons of mass destruction’ by Warren Buffett, hold the power to significantly amplify returns, especially for sophisticated investors. This article explores how derivatives can be leveraged for high-alpha trades, the strategic advantages they offer, and how to use them effectively in today’s market environment.