I picked up some VIX (Volatility Index) 2x longs early in the day since the VIX was trading at a 24(!) year low. It was only a day trade and I only held it for a few hours. I might as well have kept it on the books, but my main goal is to have as much dry powder as possible if the miners keep going lower next week. It ended working out above expectations:

 

VIX

VIX – Day Trade

 

With the US markets at nosebleed levels, the VIX certainly has big upside potential going forward. However, the greater the leverage used, the shorter the time frame one should use for a trade.  I would not be surprised to see the VIX go from 10 to 50 before years end, but that is not really a suitable time frame for 2x+ leveraged products, since it still could be weeks, if not months until that happens (although it could happen Monday, who knows).

  • VIX Long Term Chart:
VIX

VIX – still near record lows.

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