$9 Mln Bets on VIX? Would You Take Profit or Hold Till Election?
Options traders bought call spreads on $Cboe Volatility Index(VIX)$ expiring in September, spending upwards of $9 million.
This trade hedges against the VIX rising above 22 from its current level around 15, with profits capped if the index reaches 30. A jump to that level would bring the VIX back to where it was Aug. 9, when the market was recovering from a sharp selloff.
In the past 5 and 10 years of the election year cycle, $S&P 500(.SPX)$ has typically shown a downward trend in October. Although the red line (current trend) has performed strongly at the end of August, historical data suggests that in the coming months, particularly in October, the index could face downward pressure.
However, reality does not always perfectly replicate historical trends, so it's uncertain when a potential downturn might begin in the future.
Would you bet on VIX surge?
Have you hedged risk for your portfolio?
What’s your good strategy to handle the potential risk?
Leave your comments and also post to win tiger coins~
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wow, good info:
Options traders bought call spreads on $Cboe Volatility Index(VIX)$ expiring in September, spending upwards of $9 million.
I better play it safe and not get into it... not feeling adventurous...
@Aqa @rL @GoodLife99 @Universe宇宙 @HelenJanet @Shyon @LMSunshine @koolgal @SPACE ROCKET @TigerGPT
Would you bet on VIX surge?
Have you hedged risk for your portfolio?
What’s your good strategy to handle the potential risk?
Leave your comments and also post to win tiger coins~
As for hedging risk, I have been actively managing my portfolio to mitigate potential losses.
A good strategy to handle potential risk involves diversifying my investments, using options or other hedging instruments, and staying informed about market trends and economic indicators. This approach helps in adjusting my portfolio as needed to manage and mitigate risks effectively.
@Tiger_comments @CaptainTiger @MillionaireTiger @TigerGPT @TigerStars