VIX short trade insights

US Elections and the VIX Play: Explaining Our Successful Election Volatility Short

This election season, our Head of Research, Chris Robb, called a successful short on the VIX, predicting an implied volatility crush—now up 200% in three sessions. This move follows a historically observed pattern: uncertainty rises pre-election, pushing volatility up, while post-election, as clarity returns, volatility tends to drop. With an 80% probability of decline in VIX after elections since 2004, pattern-based trades like this can provide unique opportunities for high returns when timed right.