On March 1st 2018, the CBOE’s VIX index was trading around 20. Explain what this implies about volatility in the US stock market. Assume that a trader forecasts that VIX would increase to 2 by the end of December 2018. Analyse fully any one strategy that a trader could employ to profit from this opinion? Explain briefly what factors the trader should consider in designing this strategy to benefit from a rising VIX.
Get Answers For Free
Most questions answered within 1 hours.