We see a lot of talk and discussions on how to engage in Volatility Trading. There are proponents of options. And then, there are proponents of buying or shorting common stock of Volatility based ETFs / ETNs.
When using options, people use all kinds of strategies – Put spreads, Collars, Straddles, Strangles, Ratio spreads.
And then, there is discussion on how low or high the VIX is, what is the risk reward to buy a put or sell a call and so on.
The point is, if you are not making over 100% ROI per year on Volatility products, then you are not doing it right.
Open you iPhone or Android phone, open the “Stocks” App input SVXY as the ticker and see the 52 week minimum and maximum. SVXY had a 52 week low of $43.52 and high of $118.79. If you were long from $43.52, your annual ROI would have been [(118.79 – 43.52/43.53] x 100 = 172.95%.
Again, UVXY had a 52 week high of $194.80 and low of $12.04. Had you shorted at the highs and covered at the lows last Friday, your annual ROI would have been (194.80 – 12.04) / 194.80 = 93.82%
Download the free ebook at http://TradingVolatility.info to increase your ROI is Volatility Trading.
The material contained in this blog is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment or strategy is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. As an investor, you are fully responsible for any investment decision that you make.