Shorting volatility is asymmetrically more risky than shorting
stocks (except during earnings or FDA announcements on biotechs),
so if you do it, I recommend defining your risk by buying puts or
selling call spreads on the VIX itself or maybe UVXY rather than
being naked short any long volatility instrument.
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Shorting volatility is asymmetrically more
Inverse VIX question for Matt/Steve
Posted by a_l_ on 25th of Aug 2015 at 02:54 pm
Shorting volatility is asymmetrically more risky than shorting stocks (except during earnings or FDA announcements on biotechs), so if you do it, I recommend defining your risk by buying puts or selling call spreads on the VIX itself or maybe UVXY rather than being naked short any long volatility instrument.