The time to fix the roof is when the sun is shining. And it is always smart to get familiar with bear market strategies when the market is bullish. You want to have them ready to go before you need them.
We talked about a few recently and there was one I forgot to include. It takes advantage of a strong relationship that this ETF has with the S&P and it provides a simple way to get a bigger bang out of trades when the S&P decides to dip.
Take a look at this comparison and see which ETF I am talking about.
VIXY is an ETF that tracks the CBOEs volatility indicator, VIX. It is pretty clear that when you get big dips in the S&P (shown as the blue line above) the blue line above, VIXY jumps up disproportionately. When coupled with options trades, the return potential is exponential compared to just trading an inverse ETF or a put option on the SPY.
If you aren’t familiar with this ETF, add it to your watchlist and start keeping an eye on it. It could come in handy soon.
Keep learning and trade wisely,
John Boyer
Editor
Market Wealth Daily
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