Trade idea – Shorting Volatility

Last update - 17 April 2023 By James Woods

Update - 17th April 2023 The shape of the VIX curve has now moved back to levels associated with complacency. While further gains cannot be ruled out as markets often operate at such levels for extended periods, in the short-term and from a trading perspective, this suggests current levels are no longer compelling to bet on short volatility. Therefore, we would generally recommend that any members which followed this trade idea to now close out their positions, which given the uplift in value for the securities mentioned below should see profits. Below is a summary of the percentage returns for the securities mentioned in the original article. SVOL 1.89% SVXY 10.19% GEAR 11.95% GGUS 17.74% IVV 5.25% STW 4.03%

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