Three guarantees in life:
Death ✅
Taxes ✅
The $VIX retracing spikes, eventually ✅
Classic volatility truth. Every $VIX spike—no matter how violent—eventually fades. Panic sells, calm buys back in, and vol collapses. It's the most reliable mean reversion trade in markets.
If you're holding puts or hedges into a $VIX explosion, great. But don't fall in love. Spikes don't last. They're meant to be sold, not married.
The trade: fade the fear when everyone's screaming. Wait for the pop, then short vol or go long risk. Rinse, repeat. It's worked for decades and it'll work again.
Death ✅
Taxes ✅
The $VIX retracing spikes, eventually ✅
Classic volatility truth. Every $VIX spike—no matter how violent—eventually fades. Panic sells, calm buys back in, and vol collapses. It's the most reliable mean reversion trade in markets.
If you're holding puts or hedges into a $VIX explosion, great. But don't fall in love. Spikes don't last. They're meant to be sold, not married.
The trade: fade the fear when everyone's screaming. Wait for the pop, then short vol or go long risk. Rinse, repeat. It's worked for decades and it'll work again.