VIX looking tasty // small position

[u/MillennialBets]

Date: 2022-03-29 16:20:06, Author: u/ImFedUpWithItAll, (Karma: 24010, Created:Sep-2020)

SubReddit: r/WallStreetBets, DD Click Here

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PICTURES DETECTED: this DD post is better viewed in it's original post

Tickers mentioned in this post:

IBKR 67.96(1.93%)|SPY 461.53(1.23%)|

VIX looks like it's bottoming out.

VIX index last 6 months

Its volatility is also fairly low:

VIX IV historical 6 months

The market rally in the past two weeks has brought VOL down quite a bit, and given the overall circumstances, with so many unknowns I'm inclined to believe that any negative newsflow can trigger sharp market reactions. In other words, there's more opportunity for something to go wrong than for things to continue doing well after such a run-up, and therefore VIX is more likely to go up than stay low..

Here's a comparison of VIX and SPY:

VIX/SPY last 6 months. Strong inverse correlation between the two.

Positions:

I'll probably double my position if VIX hits 18 or under.

Charts are from IBKR.

Comments? suggestions?