VIX RISING vs S&P500 dropping ( Potential outcome)

2017년 1월 31일

"In order to prepare for the potential volatility ahead, Ms. Xu recommends investors buy VIX call spreads, an options strategy that involves purchasing call options at a specific strike price while also selling the same number of calls with the same expiration but at a higher strike — the level at which the contracts can be exercised." FROM WSJ
on.wsj.com/2kjSqT4


What is my point?

Just saying that bullish options are on the rise for VIX. This fear index have the potential to rise further. Dearest Donald Trump have created a path for it to rise further.

I have used a 55EMA to break the price into bullish / bearish bias in this case. I am expecting the VIX to rise to 14.0. Which means S&P500 is going to drop. ( inverse correlation)

I am not trading this but this gives me a better view on what USD is going to do and how it affects the overall forex markets.

Long VIX
Short S&P500