I see a great opportunity in the the market by investing in the VIX (Volatility index), I believe strongly that the fear or volatility in the market will come down as there is a strong positive momentum on all of the major indecies. With the government funded QE2 or quantitative easing, therefore I am taking a short (Put) position on the VIX index. This potion will give our fund an adequate risk exposure, while maintaining our Macro investing emphasis. I will be purchasing the strike 19s Putts and selling the 16s.
I think this is a sound investment idea, but is it too risky for the long term goals of the firm?
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