VIX Roundtable: Volatility Traders Reveal Secrets To Profiting From The Devilish Index

Ever tried to time market crashes with UVXY and lost your shirt? Tonight’s debate is for you.

Three seasoned vol traders will join Kevin ”Macro Tourist” Muir for a deep dive into the nature of the beast that is VIX and how to successfully trade it, both on the long and short side. It will air live on the ZH homepage tonight at 7pm ET.

To join is Harley Bassman who in the ‘90s created the $MOVE index (the VIX for bonds). Then on the long vol side is AJ Monte who sees turbulence ahead as VIX indicates an imminent major move downward in the S&P. Short vol is Michael Listman who goes by “UVXYtrader” on X and earns his keep by shorting the rapidly degrading VIX-derivative indices.

The Trades

The 30-year cannot last near 5%, Bassman says. And it hasn’t, down to 4.82% at the time of writing. Still, he calls this an ‘inflection point’ set to reverse course:

Monte is calling for at least $20.10 on UVXY (currently at $18.45) based on VIX technicals (which look bullish) and S&P technicals (bearish):

From his latest piece:

“My gap fill rules for equities states that 80% of the gaps fill on stocks, and once the gaps fill, there’s another 80% chance the price will reverse from the gap fill point and go the other way. However, gaps on the VIX fill 100% of the time and after they fill you will see the price reverse 80% of the time.”

Meanwhile “UVXYtrader” Listman has been live-tweeting his SPX options trading sprint the last couple of days, up $9,000 in profits:

Set your calendars for tonight at 7pm ET, on the top of the ZH home, to see how these guys harness the VIX in their trading.

Next time you think about trying to hit the jackpot on UVXY options… do yourself a favor and listen to the pros first.