Don't Mindlessly Sell Volatility At The End Of The Day

When looking at volatility selling strategies, Barclays has a unique take. While the consensus most often eschews volatility selling the blanket statement that “short volatility will eventually blow up,” the November 6 report treats the strategy seriously as one of several derivatives plays. But from their perspective, volatility sellers on the VIX might do well to better time their trades.

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Many people hate on Volatility  selling strategies

Selling volatility on the VIX has become more than popular – to some, it appears as a fad. A recent Forbes article noted “Selling VIX Is Hitting Magazine Covers – Should You Be Worried?” Meanwhile, a Bloomberg Businessweek article noted that...