How to Turn Volatility into a High-Power Trade, Using This 1 ETF and an Option Collar
Yahoo Finance·2025-10-20 20:28

Group 1 - The CBOE Volatility Index (VIX) has recently risen above the 20 mark, indicating increased market anxiety after spending most of the year below this level [4][5]. - The VIX serves as a forward-looking indicator, projecting the expected fluctuations of the S&P 500 Index over the next 30 days, making its recent increase significant [5]. - Historical patterns suggest that the VIX tends to rise around Halloween and Thanksgiving, often coinciding with major market crises and stock market pullbacks [5][6]. Group 2 - The Ultra VIX Short-term 2X Futures ETF (UVXY) aims to deliver twice the movement of the VIX, although actual trading experiences indicate a more typical range of 1.5-2.0 times the VIX movement [7].