How Options Strategist Sosnick Is Trading the VIX

Steve Sosnik from Interactive Brokers discusses market fluctuations, focusing on the volatility in the bond market compared to stocks. He analyzes the VIX curve, noting its predictive nature and the challenges of trading volatility. Sosnik emphasizes the risks of being net short on volatility and suggests that such strategies are best left to professionals. He highlights the importance of discipline and deep pockets when engaging in these trades.

What is a significant difference between the stock and bond markets as discussed in the video?

• Both markets have shown equal volatility.

• Bonds have shown more volatility than stocks.

• Stocks have been more volatile than bonds.

• Neither market has shown any volatility.

What does the VIX curve indicate about market volatility?

• It shows no correlation with market volatility.

• It suggests an increase in volatility.

• It indicates a stable market with no changes.

• It shows a decrease in volatility.

What is a common but risky trade strategy mentioned in the video?

• Investing in stable stocks.

• Buying long-term VIX futures.

• Selling short-term VIX futures.

• Being net short on volatility.

Why is it dangerous to be net short on volatility?

• It is only dangerous for inexperienced traders.

• It is a risk-free strategy.

• It guarantees profits in a stable market.

• It can lead to significant losses if not hedged properly.

What is advised for those considering shorting volatility?

• To do it without any strategy.

• To be disciplined and have deep pockets.

• To avoid it completely.

• To only do it during market crashes.