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#27596

Alexander Horn
Keymaster

Deshan, compared to ZIV, the 4-7m inverted volatility, XIV, first month inverted volatility is drastically more volatile with some rather erratic price movements within a month timeframe, see below. This makes it little useful for “lazy” monthly or bi-monthly rotation strategies like we normally use. There are other blogs offering highly aggressive Volatility strategies on weekly or even daily mode, have a look at our blogroll.. Also keep in mind that we’re using inverse volatility more for harvesting the “frear premium” from the contango, than for the VIX price swings, and this effect is much stronger on the right half of the VIX term curve, e.g. ZIV.

zivxiv