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. [dalio] 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…
Don't Mindlessly Sell Volatility At The End Of The Day
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.