Volatility Trading in the COVID-19 Era: Shaken not Stirred

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While the world focuses on COVID-19, there’s another virus that’s getting far less attention – the volatility virus. Investors and traders who embrace and capitalize on volatility (or “vol”) are jumping into indices that track volatility. And 2020 is surely the year to do so.

The financial markets this year have experienced profound volatility that will likely carry over into 2021. Years like this one don’t come around that often: pandemic, trade wars, civil unrest and a U.S. presidential election. Each one is enough to heighten volatility, but all together translates to turbulent markets that are not just stirred, but violently shaken. In fact, 2020 began with unemployment at a 50-year low (3.6%) and by April, was the highest in 90 years (14.7%).

When uncertainty and instability reign supreme, it’s prudent to rely on experts best suited for the job. When looking for a vaccine for COVID-19, leave it to the top cellular and molecular scientists. When breaking an international narcotics ring, James Bond is your man. And when trading volatility-lined products, leave it to the experts.