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View Full Version : The Vix: Playing with fire?



canadianglow
08-16-2010, 04:00 PM
I've been doing a great deal of reading on market cycles, and combined with some of the local kitco celebrity commentry I've concluded that the market is likely to get more volatile in the months ahead. Given that the VIX is now at a point where it's at the 25 level I had given some thought to placing a decent sized chunk of change into it, and simply holding until all hell breaks loose. Given the situation in Iran, North Korea, and with September right around the corner, I should think this won't take long. My plan was to buy it around the 23 level and sell it on the large spikes similar to what we experienced back in June.

Anyways, I did some reading on the VIX and I couldn't find anything that would otherwise indicate this index to be one of those "double leveraged" resetting kind of tools that eat one's capital away slowly if simply bought and held.

Aside from the obvious volatility of the index (no pun intended), is there any other specific pitfalls to using this index to capitalize on a rollcoaster-like market?

Anyone else accumulating positions in the VIX?

regularguy
08-17-2010, 07:06 PM
I tried it a couple of months ago when all I was hearing was how volitile the market was going to be when it melts down. Lost a good chunk waiting and waiting. Meltdown was supposed to right around the corner. Sound familiar?

I am new so probably bought high and at the wrong time. My 2 cents.

planetram
08-19-2010, 03:56 AM
Anyone else watching the VIX, have bought call positions in VIX out thru to sept and then thru to dec.. using options. key reason is to hedge ..anyone else using VIX to hedge?

MoMoney
08-19-2010, 05:39 AM
VIX is too tricky for me, sorry....:confused: