Hi guys,
Not sure if this is the good forum.
I normally only trade Brent (even got a blog haha) and you can see me in the commodity forum. But I can't overlook a nice opportunity so I decided to write a little about it.
I open this thread to discuss it with you: being long volatility. Medium-term horizon: few weeks. With the contango this kind a trade is kind of a "timing the market trade".
Here are the reasons why I think this could be huge:
Currently the VIX is at around 11-12 and has been moving between 12 and 28 for the past year. My view is at least a quick double in value in the next 1-3 months.
My idea is that we are near historical low. A VIX around 12 is not common at all and this level act as a resistance.
And there are a lot of potential catalysts for a surge in volatility:
-Fed Hike
-Trump in January
--> potential correction on stocks (currently at historical high)
I wrote an article on this matter which is way more detailed if you are interested :
http://ift.tt/2hIq1nV
Will keep you updated on the results.
Not sure if this is the good forum.
I normally only trade Brent (even got a blog haha) and you can see me in the commodity forum. But I can't overlook a nice opportunity so I decided to write a little about it.
I open this thread to discuss it with you: being long volatility. Medium-term horizon: few weeks. With the contango this kind a trade is kind of a "timing the market trade".
Here are the reasons why I think this could be huge:
Currently the VIX is at around 11-12 and has been moving between 12 and 28 for the past year. My view is at least a quick double in value in the next 1-3 months.
My idea is that we are near historical low. A VIX around 12 is not common at all and this level act as a resistance.
And there are a lot of potential catalysts for a surge in volatility:
-Fed Hike
-Trump in January
--> potential correction on stocks (currently at historical high)
I wrote an article on this matter which is way more detailed if you are interested :
http://ift.tt/2hIq1nV
Will keep you updated on the results.
Time to go long volatility (VIX)
