Stock replacement is actually one of the easiest options trades out there, just a single leg long call or long put which means even low level options approval is adequate to execute it. It involves using options to simulate a position in an underlying asset without actually holding shares in the asset. So for example, buying Call options on the SVXY would simulate a long SVXY position without needing to purchase the SVXY. Another way to simulate a short volatility position would be buying Put options on the VXX which is also a short vol position with the benefit of not having to borrow the underlying shares.
Many of you have been patiently waiting for me to prepare an option based Volatility ETP strategy as a workaround to your broker issues. It’s coming, soon! The Tactical Volatility Strategy is making a triumphant comeback and will be better than ever 🙂
Also as I mentioned yesterday, Europeans who are having difficulty accessing certain US based ETFs may find this helpful. Now I say may because you’ll still have to check with your broker and see if options are available to you on these products. If they are this could be a potential solution.
So please enjoy part 1 of the video just going over the basics, and then we’ll dive into the specifics in part 2 with an actual example.
Current VTS Total Portfolio Solution Allocations
10% VTS Conservative Vol Strategy – Optional replacement for lower risk tolerance investors
10% VTS Aggressive Vol Strategy – Optional replacement for higher risk tolerance investors
Temporarily paused: VTS Tactical Volatility Strategy
VTS Aggressive Vol Strategy – Optional replacement for higher risk tolerance investors
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