There are a lot of gyrations going on right now with central banks jockeying for position and a certain amount of dysfunctionality out there. The new normal is increased volatility than the relatively calm times in the middle of 2014:
Other than the direct purchase of VIX futures (or the VIX ETF, the most liquid of which is VXX), one must think about companies out there that can take advantage of volatility.
Most of the VIX ETFs are only good for extremely short term trading – they are affected heavily by the VIX term structure.
Correct, VIX etf/futures trading is more or less dominated by algos that are trying to arbitrage volatility from index options using woefully complicated math that is well beyond the scope of this article.
I’m alluding to a company in this post that generally benefits from volatile environments. I’ve had it now for over a year and it still has not appreciated to the point where I want to write about it yet.
company benefitting from volatility – interesting idea