Over the years, I’ve written extensively about the $VIX/SPY hedged strategy, a position that allows traders to take advantage of the inverse relationship between volatility and the stock market. The strategy is designed to profit from large market moves in either direction, but its real power emerges when an “edge” appears—such as when $VIX futures trade at a sizable premium or discount to the $VIX index.
Join Larry McMillan as he discusses the current state of the stock market on March 10, 2025.
Join Larry McMillan as he discusses the current state of the stock market on March 3, 2025.
The 20-day Historical Volatility of the $VIX futures (middle row of the table below) is now exceedingly low. This will not last, and one can expect some sharp movements in the ensuing weeks, but the timing of such a move is not clear. There have been articles on Bloomberg and elsewhere in the past week, discussing how speculators (which they classify as “smart money” – although I’m not sure how they’d know that, except possibly for the size of the trades) have been loading up on on the $VIX March (18th) 23 and 24 strikes calls. The articles claim that market makers would be extremely short volatility at that level and could accelerate a volatility push to the upside should the March futures trade that high.
Join Larry McMillan as he discusses the current state of the stock market on February 24, 2025.
Join Larry McMillan as he discusses the current state of the stock market on February 18, 2025.
Join Larry McMillan as he discusses the current state of the stock market on February 3, 2025.
Join Larry McMillan as he discusses the current state of the stock market on February 3, 2025.
Join Larry McMillan as he discusses the current state of the stock market on January 27, 2025.
Join Larry McMillan as he discusses the current state of the stock market on January 21, 2025.
