Home / Sports / Volatility Trading: The Market Tactic That’s Driving Stocks Haywire | WSJ

Volatility Trading: The Market Tactic That’s Driving Stocks Haywire | WSJ

The pandemic has fed investors’ appetite for volatility trading, a market tactic that allows traders to bet on big market swings. But analysts say these bets have grown so popular that they’re driving more volatility, making the markets riskier for everyone. WSJ explains. Image: Jacob Reynolds

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32 comments

  1. Avatar

    No likes. No dislikes. And I will be the first to like

  2. Avatar
    solli mika music

    https://youtu.be/_7kDfrgTXpc

  3. Avatar
    solli mika music

    https://youtu.be/PcOoy5w9XKU

  4. Avatar
    Sanjaya Ariyawansa Education

    Insightful Video

  5. Avatar

    Where do you draw the line on such derivatives?

  6. Avatar

    Volatility trading basically means
    Take the money and RUN 🏃‍♂️

  7. Avatar
    David Liang - College Grad Finance

    Everyone wants to make a quick buck!

  8. Avatar

    WSJ is a sellout

  9. Avatar

    Volatility shows indecision in the market and now is the time that investor aren't able to decide where to park thier fund …. So volatility steps such a huge high in this pandamic ..

  10. Avatar

    Volatility isn't an investment

  11. Avatar

    TVIX was just de-listed, very interesting as to possibly why.

  12. Avatar

    I'm just here so I can understand why the next recession is gonna happen.

  13. Avatar
    Financial Shinanigan

    If you think of investing as marriage, people wouldn't be trading in and out like they are now.

  14. Avatar

    Please stay out of UVXY if you are not an experienced investor. I learned the hard way recently.

  15. Avatar

    I’m a volatility trader and I haven’t lost any money this year.

  16. Avatar

    We need to cancel volatility

  17. Avatar

    The huge bubble will pop soon.

  18. Avatar
    Saisravan Satturu

    When private equity hedge funds gets more influence in financial markets that stock market gets more volatility

  19. Avatar
    Jorish Nathanael

    Hello forex

  20. Avatar

    Been shorting since February, so far so good! A few downs tho. Or rather say a few ups LOL!

  21. Avatar

    Some people will go deaf at 4:15.

  22. Avatar

    The dealer will eventually deal himself a blackjack and wipe everyone out at the table. Take your chips and go have a drink by the bar for now. The shoe (2020) will not be favorable for most. Same concept with the markets.

  23. Avatar

    This reminds me of the junk bonds in the 1980s and the high risk mortgage funds earlier this century.

  24. Avatar

    This type of trading in which most people don't understand what they are doing is what causes most US crisis and make countries with heavy trading with the USA suffers from time to time.

  25. Avatar

    Good piece but not the correct explaination, basically VIX is not directly investable but there are ETFs linked to VIX index which has a convexity in returns that means downside is limited if you buy it in a stable market when VIX is between 14 to 20 but upside is unlimited with high probability of large gains which creates asymmetrical returns. These investments are mean reverting that means you cant buy and hold in the long run, you sell it as soon as you reach your return target. The huge risk comes in when you have direct exposure through short positions which can create huge losses. Hope this helps

  26. Avatar
    Eugenio Renaldo

    Strange how Daddy's girls are always happy when they know they're being watched even when talking about something so dramatic for regular folks.

  27. Avatar

    My strategy is to stockpile canned dogfood and hope for the best.

  28. Avatar

    Is this Joanna Stern's voice? She's carrying WSJ on her back right now.

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