How To Trade Volatility by Andrew Sachais
Volatility can be a trader’s best friend, but trading volatility can be tricky. Here we look at an indicator that has a negative correlation with the Cboe Volatility Index (VIX) and could help you identify when volatility could increase.
A lot of attention has been paid to volatility over the past few years, or rather, the lack of volatility in the broader S&P 500 index. Investors have tried to speculate by buying the Cboe Volatility Index (VIX) or VIX-related products whenever they felt that riskier assets were about to roll over, which has ultimately been a losing trade thus far ...