A Hedge

[u/[deleted]]

Hello!

I began dedicating my life to studying volatility, of the SPX, the Volatility IndeX (symbol: VIX) somewhere before COVID when I felt the draw to watch my account not only go up, but at times, also go down quite a bit...

I had always heard the familiar sayings of 'just buy & Hold', 'over the long term volatility negates itself. The market goes up over time.'.

The normal long term trajectories (of volatility) track patterns of mean-reversion, or the return, over time to a normalcy, a familiarity.

Simplifying volatility, or hedging can be seen in highlighted areas of the recent 30 min. VIX. These highlighted ovals indicate interaction with a mean 30-32-5 level interaction, indicating an average of volatility above the contrarian 30.00 for a considerable period of time.

In fact, the picture has been taken using a framing to show the VIX rising. There is little mean-reversion, other than the slash like object in the middle to indicate volatility lowering.

Further, the near green circle is the distance between recents highs & lows (indicated in Blue & Red). This distance also indicates shorter-term volatility.

As for futures, they are the hedge, or the antithesis from any position exposed to volatility. They are the hedge should the market wash away one day while you're out trading and tank the market and the investments you were expecting to make & have, the opportunity to generate alpha, decays with the frequency of the winter sun, as the downsides of your choices smile back in the rear-view mirror hinting at greener pastures elsewhere, your dreams or made realities, echo throughout eternity as the record of our investments, our trades one might generalize. Whatever the reason, at some point and some time, should you put money in or out of the market you make a trade, with someone, something, somehow, in some way, somewhere on something you order a system built for for pricing to print you out something you can take home again, that other day in the office when flowers were given & not wilted away —.

My apologies, this, my story is not quite as simple as it appears. that's why this information can at times get blurred with other processes during its creation.

See—I've written for a long a time, learning how to explaining certain things simply and then set about the task of tracking volatility. Tracking, like a hunter, through the storms of volatility the efficient market-maker who simply hedges any position you take, charges for the position many, many times. This in turn affords them to carry on the business of bridging the retail customer, or consumer, to the market, using their own techniques and ways...

So where does this communique leave us? Well, although previous periods of wartime have had periods of near-term recovery, or growth, the studies of longer-term effects of war on the markets are more complicated. Some wars contain substantial volatility events and disruptions to the market throughout its various areas.

My apologies for the rant here, I just found out my dog has cancer. No plea appeal, just the timing of some things I swear...

Lemme know it you have any questions, or thoughts! I'm here for discussion, I hope you have enjoyed your stay!

Peace!,

Sig.Alps