VIX trading strategy

The Middle East Heating Up: Geopolitical VIX Spike Trade

Trade Updates: Election Volatility, Seasonal Trends, and What’s Next

Election volatility delivered gains, and our strategy to short the VIX on Election Day paid off with a 210% return in just a few sessions. Our analysis predicted an implied volatility crush, tapping into an 80% historical likelihood, and we positioned deep out-of-the-money for maximum returns. We’ve also scored wins across several other trade ideas, reinforcing our approach of leveraging calculated, high-reward opportunities. As we move forward, our portfolio includes tactical plays in high-potential sectors with a focus on consistent, data-driven trades.

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

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.

Short The VIX: Get Yourself an Early Christmas Present

The Federal Reserve’s upcoming rate decision may bring volatility, offering a strategic opportunity. Despite market uncertainty, fundamentals remain strong with rising industrials, job growth, and revised GDP. We expect the VIX to drop to $12-$13 by December. Position yourself with $VIX puts and $SPX call options to take advantage of the year-end rally.

Three Reasons Why Summer Volatility Will Likely Retreat and a Trade to Play It

Myron Scholes noted that risk management often fails during systemic events. Recently, I accurately predicted periods of low volatility using my VIX theory, yielding significant returns. Despite recent market fears, I believe the true mean of the VIX is lower than current levels. The economy’s resilience, potential Fed cuts, and market improvements support this outlook. Shorting volatility with strategic options can capitalize on the current market environment.