Time to go long volatility (VIX)

OilTrading.blog

Junior member
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Hi guys,

Not sure if this is the good forum.

I normally only trade Brent (even got a blog haha) and you can see me in the commodity forum. But I can't overlook a nice opportunity so I decided to write a little about it.

I open this thread to discuss it with you: being long volatility. Medium-term horizon: few weeks. With the contango this kind a trade is kind of a "timing the market trade".

Here are the reasons why I think this could be huge:

Currently the VIX is at around 11-12 and has been moving between 12 and 28 for the past year. My view is at least a quick double in value in the next 1-3 months.

My idea is that we are near historical low. A VIX around 12 is not common at all and this level act as a resistance.

And there are a lot of potential catalysts for a surge in volatility:
-Fed Hike
-Trump in January

--> potential correction on stocks (currently at historical high)

I wrote an article on this matter which is way more detailed if you are interested :

https://oiltrading.blog/2016/12/20/20-12-2916-medium-term-great-riskreturn-trading-opportunity-long-volatility-vix/

Will keep you updated on the results.
 

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