Hedging Portfolio - Adding UVXY to my Blog portfolio

Ultra VIX Short-Term Futures ETF (UVXY)


VIX (Volatility or Fear Index): Last week VIX spiked to 45.31, its highest since April 2020. Today again we are seeing the blood bath uninterrupted. The VIX ended the week at 45.3 which is one among the highest weekly closes in history of the stock market. Only on last Friday, 4/4, the VIX rocketed 50% with the news that China will be imposing 34% tax on U.S goods current uncertainty surrounding the market. This was one of the market’s worst weeks since the COVID-19 crisis. Uncertainty lingers as global responses and tariff negotiations unfold. If you attended my investment meets then I use to keep talking about UVXY. I had some position but I am adding Ultra VIX Short-Term Futures ETF (UVXY) to my blog portfolio for hedging my portfolio. I do understand that it has gone up significantly and it’s goes uplike fire or comes down like rock depending on the fear of the investors. In other words, if investors are panicked then it would go up like fire, but if there is no fear then it would go down significantly. So, this is extremely risky. It's NOT an investment rather it's really useful in such chaotic environment to protect the portfolio. It should be traded (bought and sold) completely for trading to mitigate such huge collapse in the marketwhich instill fear among investors. As said, more the fear, more it goes up like rocket and when there is no fear, it would drop like a rock. This is extremely volatile and may go up or dow 20-30 or 40% on a single day depending on investors’ fear. Basically, this is an insurance against the portfolio. If there is no fear then it’s kind of waste, if there is fear like current market situation, then it pays big. But I would not put more than 2-3 or 5% of my portfolio depending on the market situation. I will add to my blog portfolio when I publish in a day/two. I am adding to my portfolio but every investor must do their due diligence and analyze the huge risk/reward before determining whether it's suitable for them or not. This is not an investment advice, rather my strategy to mitigate some risk. 


I will share many research and my view on my soon to be published April Blog. Stay tuned!!





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