Nasdaq 100 smiles during market frowns

摘要

Every now and then you just have to accept you do not understand something. In your correspondent's case, trading a volatility index or a derivative thereof when you are motivated by a price opinion falls into that category. If you think the market is going to go down, there are plenty of price-based futures, options and exchange-traded funds capable of executing your opinion precisely and with a well-behaved and liquid instrument. Going long volatility instead recalls a long-ago comment made about self-impressed slugger Reggie Jackson: "There isn't enough mustard in the whole world to cover that hot dog."