Trade idea – Shorting Volatility

As the old adage goes, buy when others are fearful, sell when others a greedy, but how can we determine when such an opportunity presents itself? There are several ways, investors can use discretion to judge when they believe others are fearful, presenting an inefficiency in markets or we can utilise quantitative signals as a framework. Weakness in global equities over the past several days because of increasing interest rate expectations as well as the collapse of two US banks this week has seen fear, measured by the VIX Index, spike higher. This presents a compelling trading opportunity to add risk to a portfolio which will be outlined below, within a signal-based framework as an informal trade recommendation.

Minimum Investment Amount and Period

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