Anyone trade the VIX?

[howard555]

^VIX Basic Chart | VOLATILITY S&P 500 Stock - Yahoo! Finance

Since 1995 the VIX has been over 40 two times or in two short time frames and over 30 maybe 8 times. Over 25-30-40 would be a market crash since VIX measures volatility and not so much the direction. The VIX can go up 20-30% in a couple days because the S&P could lose 45 points a day for two days. The trigger is unknown.

[Lowexpectations]

Originally Posted by UntilTheNDofTimE

What does the term rebalance here mean?

Buy/sell assets daily. It's goal is to move 300% +\- what the Russell 1000 financial services index moves on a daily basis . Because it's a daily goal they have to buy/sell at the end of the day to position themselves for the 3x move tomorrow.fas is long the index and faz is short. This is not a hedging position either unless you are long a lot of the Russell 1000 fin service

[howard555]

Today you have an example of VIX. The S&P is down 1.23% and the VIX is up over 11%.
VIX can be a profitable trade.

[howard555]

Buy a little VIX next week when it hits $11.50