Skip to main content

Posts

Showing posts from June, 2021

Is it time to Hedge?

It has certainly been a while since my last post. Since my recent call out, the S&P 500 index has risen 2.89%, with that of the VIX index declining by more than -16%, and SVXY being up 10.66%. I am in no way bragging on how I can "time the market", because this is not entirely possible. I am simply showing the benefits of using objective information gained from within the volatility asset class, as well as the various derivatives markets that I look at, to create a probability-weighted decision-making process. Now, I will show my reasons as to why the short volatility trade might be put on pause for the near future.  Update on Market Positioning As I have explained numerous times before, I most heavily weight the net positioning of Dealers/Intermediaries more than other categories, simply because I believe that this group has the best shorter-term information available, whether that be in pricing the implied volatility curve, or analyzing order flow. Below is a chart of n