For weeks, we’ve pounded the table on volatility trades.
All as the coronavirus wreaks havoc home and abroad. Worse, the U.S. government warns we could see the pandemic last up to 18 months or longer, and “include multiple waves of illness,” as noted by CNN. Hospitals are also sounding the alarms on short supplies with the outbreak showing no signs of slowing.
Not only has the story crippled society, it’s put a dent in many trading portfolios – except those that were well prepared for volatility. For example, for weeks, we mentioned several opportunities, including:
· Ultra VIX Short-Term Futures ETF (UVXY)
· VelocityShares Daily 2x VIX Short-Term ETN (TVIX)
· iPath S&P 500 VIX Short-Term Futures (VXX)
Since we initially highlighted them, they’ve all exploded.
In fact, the UVXY popped from about $15 to a high of $135 – an 800% move.
The TVIX exploded from about $60 top a high of $1,000 in days – a 1,567% move.
The VXX ran from about $17 to a high of $78.84 – a 364% move.
Those have been great wins. However, we don’t think the gains have been capped just yet. In fact, with more volatility ahead, each could move even higher from where we initially highlighted the opportunities. Stay tuned for more on each.