Anybody Ever Trade Volatility?
  • One of the best trades over the past five years is to short volatility. Take a look at the charts of VXX and UVXY for example.. Just minting money on the short trade here. There's supposedly a natural fade to all vol which I'd love to get a more coherent understanding of. Originally I was thinking volatility ETFs would go up when the markets start making big moves down or up. It's obvious the vol ETFs are simply skewed towards going up when markets go up and vice versa.

    Sam

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