How MKM's Jim Strugger Is Trading the VXX

The video discusses the concept of volatility and the volatility of volatility, focusing on the VXX and VIX indices. It highlights the current high volatility environment and the shift in investor behavior from long to short volatility positions. The video emphasizes the importance of pairing long volatility exposure with existing hedges at both the single stock and index levels. It also outlines a strategy involving short-duration options to manage and monetize volatility effectively.

What is the VXX primarily based on?

• The VIX

• The NASDAQ

• The S&P 500

• The Dow Jones

What recent trend has been observed in VIX Futures positioning?

• A shift from short to long positions

• A shift to neutral positions

• A shift from long to short positions

• No significant change

Why is it challenging to manage long volatility positions?

• They are easy to monetize

• They require no hedging

• They are difficult to manage and monetize

• They are risk-free

What is recommended for long volatility exposure?

• Medium-duration investments

• Long-duration investments

• Short-duration investments

• No investments

What is the purpose of selling a 28 strike put in the strategy?

• To eliminate all risks

• To avoid any gains

• To increase risk

• To cover potential losses