How to Short the VIX

The speaker, Imran, discusses trading strategies for the VIX (Volatility Index) around key market events, focusing on the behavior of the VIX futures curve in the context of an upcoming election. He explains how the VIX curve, which was recently flat to inverted due to market panic, is now steepening again, especially in the October contract because of election uncertainty.
Imran outlines several strategies to capitalize on this, including selling September VIX futures and buying October futures to benefit from the expected normalization of the curve. He details a specific strategy using put options: buying September puts and selling October puts at zero cost to profit from the VIX curve's shift, noting that this approach has yielded significant returns, with some trades delivering a 50% return in just a week.
He also discusses a lopsided put fly strategy designed to profit from a potential drop in the VIX below 15 by September. Imran emphasizes the importance of setting up trades with a high probability of success, balancing risk and reward. He concludes by explaining the specific strikes used in his put fly trade and how to adjust it based on one’s view of the VIX's potential bottom. The video wraps up with a summary of these trade structures and their potential outcomes.
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Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.
Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.

[@thetruesora2111]

Great stuff, lopsided flies on the VIX are probably the easiest, broad based strategies to trade vol directly in whatever direction you need to

[@spotgamma]

appreciate the feedback, glad you found this helpful. could be an interesting setup with Powell this weekend. (if you think he'll keep things calm).

[@s0.0s]

That "VIX below 15 in September" prediction didn't pan out.

[@spotgamma]

very true. market got nasty to start sep.