Every so often, especially when markets are extremely volatile, the financial press remarks on the VIX index, which is considered one of the best 'fear and greed' indicators in the US market. The steady growth in volume, the expansion of the trader base, and the generation of historical price data has also led to increased interest in risk and volatility in academic circles, where published work on the topic has contributed to a better understanding of the asset class, which in a virtuous cycle has further contributed to a broadening interest in volatility products such as VIX futures.
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After the Chicago Board Option Exchange's (CBOE) introduction of VIX futures contracts, and the subsequent introduction of exchange-traded products for volatility investing, investors have allocated non-trivial portions of their portfolios to volatility-linked investments.
Mr. McCarty was previously the Chief Equity and Option Strategist at Meridian Equity Partners, where he was best known for pointing out the unusual options activity that preceded exceptional stock price moves in individual equities including Bear Stearns, Fannie Mae and Freddie Mac as well as identifying noteworthy call buying preceding the public announcement of takeovers for companies including Barr Labs and EDS.
A few weeks ago I wrote an article in which I explained the rationale behind why I have initiated a short position in iPath S&P 500 VIX Short-Term Futures ETN ( VXX ). Over the past few trading sessions, I have added size to my short position in anticipation of declines in the index over the next few quarters.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
In addition to the per contract per side commission, futures customers will be assessed certain fees, including applicable futures exchange vix futures curve and NFA fees, as well as floor brokerage charges for execution of non-electronically traded futures and futures options contracts.