Is there any doubt that we’re in significantly uncertain times? For starters, we’re only a month away from the election of a new leader of the United States with two candidates that are just about exact opposites.
Then you can add on the flimsy economic environment created by the Federal Reserve, which now has to figure out when to hike interest rates. Plus, we have European banks falling apart, Russian intervention popping up all over the map, and rising tension levels with China.
There’s plenty to be scared of, but there’s also a bright side: this no-brainer payday will virtually float into your pocket when you do this…
Bet on volatility.
If you’ve been around Wall Street long enough, you know that you can “bet” on just about anything in the world.
And one such subject of trade is volatility.
That’s why I want to point you in the direction of the Volatility Index (VIX), which you can see here thanks to Stockcharts.com:
There are a few things to note straight away about the VIX, which is a barometer of volatility within the stock market:
- There’s a strong bottom for the VIX just below 12.
- When the VIX spikes, it can jump 11 or 12 points in a matter of days to reach heights of 25 and beyond.
- When the market dips, like it has over the last two days, you can see that the VIX climbs.
But while I wish we could trade the VIX itself, this index is not a tradable security. That’s why so many people fail to ever bet on volatility.
However, there is a way to make no-brainer money based on the actions of the VIX…
It’s called the ProShares VIX Short-Term Futures ETF (VIXY). And when the VIX rises, so too does VIXY, almost without fail.
Just from Monday to the beginning of trading yesterday, VIXY shares jumped up from $27 to $30, which is a double-digit gain in less than a week! And just imagine having an option on it…
You’d be looking at more like 50% gains in that same time frame!
Here’s my point, with all the uncertainty in the world, volatility is inescapable. And between the coming election and the interest rate hikes that should follow close behind, the VIX and VIXY both looked primed to hit BIG gains very, very quickly…
