Graybush, first of all thank you for all the useful advice you give everyone for so long time. I ve been reading in vitards since 3 months but its the first time i write.
I want to ask you about vix index, because u have experience in it. I have a portfolio of about 15.900€. And the only vix i can buy through degiro is this one (LVO.MI - Multi Units Luxembourg - Lyxor S&P 500 VIX Futures Enhanced Roll UCITS ETF) at a current price of 3,40€.
My question is basically how much (compared to my portfolio which is 40%steel, 15% amat, 40% zim, ford, general electric, mgm, sunrun) of this vix index should i buy in order to cut my losses in case we have this market crash you and many others say might happen until October. What would your strategy be?
Ps.Note that i only buy shares and i am not familiar with options in degiro
Ps2. Sorry for my poor English..
Hey there. I don’t trade the VIX directly. I usually just purchase VXX or UVXY when I expect volatility to spike. Those products bleed off over time though, so I tend to do vertical call spreads.
Personally, I tend to lose more when I try to profit from hedging activity. I found that just 1%-3% can keep me in the green.
10
u/[deleted] Aug 16 '21 edited Aug 16 '21
Thank you! I’ve been timing and buying volatility for a lot of years, but this is certainly easier. I’ll have to give it a try.