Thursday, May 3, 2012

Guest Columnist at The Striking Price for Barron’s: Why I Am Short Fear

Today I am a guest columnist for The Striking Price on behalf of Steven Sears at Barron’s, weighing in with Be Greedy While Others Are Fearful.

The Barron’s article is a quick summary of some of the reasons I am short fear. Essentially, I am short fear not because I have a Panglossian view of the world and am unconcerned about events in Spain, China, Iran and other global flash points, but rather because fear is almost always overpriced – and by a wide margin. Between the volatility risk premium and persistent negative roll yield, long VIX strategies generally face an uphill battle.

I spell out the details of my thinking in the Barron’s article, but readers can find some similar themes in the links below.

Related posts:

A full list of my Barron’s contributions:

[source(s): StockCharts.com]

Disclosure(s): short VXX at time of writing

blog comments powered by Disqus
DISCLAIMER: "VIX®" is a trademark of Chicago Board Options Exchange, Incorporated. Chicago Board Options Exchange, Incorporated is not affiliated with this website or this website's owner's or operators. CBOE assumes no responsibility for the accuracy or completeness or any other aspect of any content posted on this website by its operator or any third party. All content on this site is provided for informational and entertainment purposes only and is not intended as advice to buy or sell any securities. Stocks are difficult to trade; options are even harder. When it comes to VIX derivatives, don't fall into the trap of thinking that just because you can ride a horse, you can ride an alligator. Please do your own homework and accept full responsibility for any investment decisions you make. No content on this site can be used for commercial purposes without the prior written permission of the author. Copyright © 2007-2023 Bill Luby. All rights reserved.
 
Web Analytics