VIXY Forecast + Trading Strategies


Bullish Case: Rising geopolitical tensions and economic uncertainties may drive VIXY higher as investors seek protection. The implied volatility spikes for August indicate potential short-term market stress, which could lead to significant VIXY gains.


Bearish Case: The overall trend in VIXY suggests ongoing volatility erosion, with a historical pattern showing declines. Market sentiment leans towards stability, and recent bearish forecasts indicate VIXY might continue its downward trajectory in the absence of catalysts.


Potential Outcomes:

1. 20% chance of sharp VIXY rise due to geopolitical events;

2. 60% probability of stabilization with minor fluctuations;

3. 20% chance for further declines as the market reassesses risks.


Trading Oracle: Adopt a bullish calendar spread, buying August $12 calls and selling September $14 calls. This strategy captures rising volatility while managing risk effectively, aiming for profitable outcomes as volatility spikes in the coming weeks.


July 25, 2024


ProShares VIX Short-Term Futures Forecast

VIXY      ProShares VIX Short-Term Futures











Correlated Assets

Assets that tend to move strongly with VIXY



LI Forecast + Options Trading Strategies   LI  Li Auto (0.76)


VFC Forecast + Options Trading Strategies   VFC  VF (0.75)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.37)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.88)



Uncorrelated Assets

Assets with little price relationship to VIXY



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.37)


VFC Forecast + Options Trading Strategies   VFC  VF (0.75)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.76)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.88)



Anticorrelated Assets

Assets that tend to move strongly against VIXY



LI Forecast + Options Trading Strategies   LI  Li Auto (0.76)


VFC Forecast + Options Trading Strategies   VFC  VF (0.75)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.37)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.88)





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