How to Short Volatility: A Strategy Poised For a Comeback

By Matthew Makowski Traders that short volatility have been quiet lately. But as the markets reach new all-time highs, it’s stirred awake many a slumbering bear looking to make a bullish play and start shorting volatility again. After all, there’s money to be made… Even during even brief spells of market tranquility.

One of the easiest ways to benefit from ups and downs in the market is by investing in the Barclays iPath Series B S&P 500 VIX Short-Term Futures ETN (BATS: VXX). This exchange-traded note tracks an index with exposure to futures contracts on the Chicago Board of Options Exchange (CBOE) volatility index.
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