[reaper23]

(01-01-2014 02:48 PM)Nemencine Wrote:  

@reaper23,

I see. You want to do a contrarian play. Reminds me of michael steindhart variant perception approach.

You want to go long volatility and short the market? Try the VIX. I briefly mentioned it here.

(12-25-2013 06:04 PM)Nemencine Wrote:  

..... Speaking of volatility, maybe somebody will come up with VIX for bitcoin.....

There are a bunch of VIX based ETFs and ETNs that you can use to play long volatility and short the market. Below should be a list:

BNPV - BNP Paribas Enhanced Volatility Fund
IVOP - iPath Inverse S&P 500 VIX Short-Term Futures ETN
SVXY - ProShares Short VIX Short-Term Futures ETF
TVIX - VelocityShares Daily 2x VIX Short Term ETN
TVIZ - VelocityShares Daily 2x VIX Mid Term ETN
UVXY - ProShares Ultra VIX Short-Term Futures ETF
VIIX - VelocityShares VIX Short Term ETN
VIIZ - VelocityShares VIX Mid Term ETN
VIXM - ProShares VIX Mid-Term Futures ETF
VIXX - Jefferies S&P 500 VIX Short-Term Futures ETF
VIXY - ProShares VIX Short-Term Futures ETF
VXX - iPath S&P 500 VIX Short-Term Futures ETN
VXZ - iPath S&P 500 VIX Mid-Term Futures ETN
VZZB - iPath Long Enhanced S&P 500 VIX Mid-Term Futures ETN
XIV - VelocityShares Daily Inverse VIX Short Term ETN
XXV - Barclays ETN+ Inverse S&P 500 VIX Short-Term Futures ETN
XVIX - UBS E-TRACS Daily Long-Short VIX ETN
XVZ - S&P 500 Dynamic VIX ETN
ZIV - VelocityShares Daily Inverse VIX Mid Term ETN
CVOL - C-Tracks Citi Volatility Index Total Return ETN

Mix match them the way you like... and add options to them or whatever you want to do.

best of luck to all of us in 2014,

regards,

Nemencine

(01-01-2014 09:51 AM)reaper23 Wrote:  

hypothesis:

volatility is low, market is over valued, P/E's out of wack, share buy backs propping up prices, yen carry trade pushing assets, fed QE pushing economy, nothing real moving economy.

play:

i want to play long vol, short the market

question:

best way to do this with the understanding that the market can be irrational longer than i can be solvent

one thought I had was out of the money long dated puts on DIA or SPY. but I can't get expiration dates later than dec '14 / jan '15 through etrade.

any ideas?

thanks. definitely familiar with the and its pricing impact on options. Which is one reason right now why I thought buying puts would both expose me to vol and give me the shorting feature at the same time.

time decay is a bitch though

i'll check out some of those etfs you suggested.

thanks