Don't Mindlessly Sell Volatility At The End Of The Day

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Mark Melin
Published on
Updated on

When looking at volatility selling strategies, Barclays has a unique take. While the consensus most often eschews volatility selling the blanket statement that “short volatility will eventually blow up,” the November 6 report treats the strategy seriously as one of several derivatives plays. But from their perspective, volatility sellers on the VIX might do well to better time their trades. [dalio] Many people hate on Volatility  selling strategies Selling volatility on the VIX has become more than popular – to some, it appears as a fad. A recent Forbes article noted “Selling VIX Is Hitting Magazine Covers – Should You…

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Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.