Three Simple Ways to Trade Volatility, as Markets Plunge


 
 
09:19 10/23/2018

Futures are plunging. Investors are fearful.

The sky is falling… the sky is falling…

But there’s little reason to panic and sell. For one, you had time to prep for volatility.

On August 29, 2018, we noted how others were prepping for midterm elections, fear, and considerable overbought conditions with the Velocity Shares Daily 2x VIX Short-Term ETN (TVIX), which traded at $31; iPath S&P 500 VIX Short-Term Futures (VXX), which traded at $28.75; and the ProShares Ultra VIX Short-Term Futures (UVXY), which traded at $41.15

At the moment, the TVIX sits at $41.82. We believe it could spike to $50.

The VXX trades at $34.56. We believe it could spike to $45. And the UVXY now sits at $53.38. We believe it can run to $65, near-term.

Even if you didn’t trade volatility, there’s no reason to panic.


This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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