Volatility Strategies Cheat Sheet

Volatility Strategies Cheat Sheet

Volatility strategies are categorized into 4 major views and 5 different expressions / strategies.

  1. Tactical Long Volatility: Short term trading view for when volatility / VIX is low and you expect it to increase
  2. Tactical Short Volatility: Short term trading view for when volatility / VIX is high (e.g. after a volatility spike) and you expect it to decrease
  3. Strategic Long Volatility: Permanently long volatility
  4. Strategic Short Volatility: Permanently short volatility
Links to detailed strategies:

(A) Options on S&P
(B) VIX Futures
(C) VIX Options
(D) Volatility ETFs
(E) Options on Volatility ETF