This will be the trade that makes your Christmas a nice one, and it is very basic. I will have more to say about this next week, but suffice it to say, I will be shorting the UVXY soon, and I will never cover the position, essentially evading capital gains tax. More to come. Meanwhile, the VIX curve has flattened out in a way that has been rare this year:
The VIX finally came alive, as the market really cascaded through obvious support levels on heavy volume. This is still not the time to sell vol unless you are very nimble. There will be plenty of time to sell it after the event risk ends and the volatility exhale commences.
I warned readers to be wary of selling vol recently, and those that ignored that are feeling some pain. Patience is key in finding the entry point. If you have to be early, save some selling power for a real scare. We may have two weeks to go before the optimal entry point presents itself.
Stay tuned. These are the opportunities you wait months for.