Best VXX and UVXY Trading Methods for Consistent Profit

Revealing the best and worst methods to short volatility. In this video we go over 5 live Short VXX trades and determine which one is the best long-term. We compare short VXX with a long VXX Put Option, long VXX Put Vertical, long VXX Put Butterfly, and a short VXX Straddle.

Here's Your Link for a FREE Trial to VTS!

Follow me on Twitter:

---

Brent Osachoff

#volatilitytradingstrategies #optiontrading #shortvolatility #UVXY

[vernonwgriffin]

Call Credit Spreads - Post VIX Spike. 60-90 DTE.
Broken Wing Butterflies - Risk-less side dependent on level of VIX. Profit tent peak at expected VXX value at expiry. based on historical decay.
Broken Wing Condors - Risk-less side dependent on level of VIX. based on historical decay. Profit tent peak at expected VXX value at expiry, based on historical decay.

[iddobotzer]

Very informative video, thanks! A quick question, like you explained in previous videos - the option market is very efficient, meaning outright buying puts wouldn't work. Whats the difference when it comes to the spreads you mentioned in the video? (Where is our edge).

[kamran]

How often should the trades be layered? Once a week?

[vishaantiwarie]

What butterfly spreads are you seeing that yields 5:1 returns?? Not seeing anywhere near that. Seems to be priced in by the market....What time frames and other parameters do you set to see those high return ratios?

[Petr-qzyj]

Thank you... enjoying your content very much!

[antoniolopes]

@VolatilityVIX / Brent - Great content! Thank you! When can we expect to see the final videos for this series? One question. When you trade the VXX options, which expiration do you normally use? And until when do you hold the options? E.g. hold until hours prior to expiration? Thanks again!

[albertchu]

What's your opinion on selling covered calls on UVXY?

[Tom-npct]

Hey Brett, just wanted to open up an interesting discussion with you in regards to SVXY - would really appreciate your knowledgeable insight. I am looking into strategies for trading SVXY short term, and consequently been looking at backtests of the product (inc simulated ones going back to 2004). It seems things could work for me with this strat when backtesting to 2004.

However, the biggest concern for me is the 1997-2003 period, which I can't find backtests for. This saw persistent elevated levels in the VIX, which haven't returned ever since. I feel like this could decimate a SVXY strategy, because I would imagine the consistent high levels would lead to a consistent decline in SVXY. Given you know a lot about these types of products, how do you think SVXY would perform 1997-2003?

All the best,
Tom

[atto]

Curious — why not use VIX options directly to build the bearish butterfly? Better tax treatment, very liquid.

[gbolla]

Hi Brent what do you think about broken wing butterfly with no risk on up side ?? thanks.

[ezrakoper]

Why do you short vxx instead of buying long SVIX? Long is way way less dengeraus.bsobwhy you don't mention at all buying SVIX