Feels like volatility has been creeping back into the conversation lately, and I’m trying to get a read on how people are actually playing it.
Are you building put ladders across different expirations just to give yourself more flexibility on timing? Or trying to catch downside with inverse leveraged funds, knowing those only really work if the move is clean and directional? Or did you already make your move earlier with longer-duration calls when VIX was sitting below 20?
Each one feels like a different bet on what happens next. Put ladders assume things eventually cool off, but timing is messy. Inverse funds feel like you need conviction that the market keeps moving lower, not just drifting. Longer calls assume volatility sticks around longer than people expect.
This doesn’t feel like a clean “spike then drop” setup. More like a transition where things can grind higher before anything resolves, which makes timing way harder than it looks.
Volatility hedging has always been a pretty small slice of the portfolio for me. Lately I’m starting to question whether that still makes sense, or if it needs to be treated a bit more seriously in this kind of environment.
Curious how others are approaching it. Still treating vol as a side piece, or starting to size it differently? I hope I met all the limits imposed by mods for a successful submission.
As we approach $30 VIX, is your volatility hedging strategy evolving? Do you have a cyclical or opportunistic plan?
byu/BroItsMick ininvesting
Posted by BroItsMick