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Education

Podcast on Volatility with Michael Listman and Ali Zandi

What we trade

Volatility

What is Volatility?

There are two types of volatility:

1. Realized Volatility: This is volatility that’s already happened in the past. This is not the type of volatility we are interested in.

2. Implied Volatility: This is the market’s expectation for future volatility, and this is the type of volatility we are interested in.

We invest in Volatility as an asset class. Volatility trading has evolved significantly over the past decade. Investors have begun to see volatility as more than just a hedge against volatile markets, but also as an investment in its own right.

The VIX Index is the most popular measure of implied volatility. It tracks volatility on the S&P500 Index. The higher the VIX, the more volatility it is predicting for the future.

However, our favorite Volatility instrument is UVXY. It is an exchange traded product from ProShares that is based purely on a calculation, which unlike other traded stocks is NOT affected by direct supply and demand forces. Because UVXY itself is based on a math equation, it allows us to take advantage of it using our own set of math equations.

CI Volatility Investments
Detailed financial trading screen displaying market trends and data, highlighting the strategic benefits of investing in market volatility with CI Volatility Fund.
Why is UVXY our favorite volatility instrument?

Because it goes down forever

UVXY 1.5 leverage goes down forever graph
why does it decay (go down) forever?

UVXY Decay Factors

Futures in Contango

Contango is the main driver of UVXY's downside price path. The daily roll from front month contract to second month contract, where the front month is sold at a lower price than the second month, creates ever-renew pressure to the downside.

CI Volatility Investments Futures in Contango VIX Future Term Structure

Beta Slippage

Beta Slippage is a multi-day tracking inefficiency found in percentage-based leveraged funds. The table below illustrates when an instrument moves up and down in percentages, it loses value over time because each time it's forced to move up from a lower base.

CI Volatility Investments Beta Slippage
CI Volatility Investments
Our Philosophy

Directional Certainty

Our goal is to generate Income by exploiting the directional certainty intrinsic to leveraged Volatility Instruments such as UVXY, UVIX, SVIX among others.

Contact Us

Get in touch

Whether you have queries about our services, need help with your trading account, or require professional advice to navigate the financial markets, our dedicated team is always ready to help.


    Contact
    C/O CI Volatility Investments
    Elgin Court, Elgin Avenue
    Grand Cayman KY1-1106, Cayman Islands

    CI Volatility Investments © 2024. All Rights Reserved.

    Investing involves risk, including the possible loss of principal and fluctuation of value. Past performance is no guarantee of future results. Carefully consider the investment objectives, risk factors, charges and expenses before investing. Past account performance is not indicative of future results and individual account performance may vary.
    This commentary on this website reflects the personal opinions, viewpoints and analyses of Ali Zandi and other employees of CI Volatility Investments. The opinions expressed on this website, in particular the “education page”, are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security. It is only intended to provide education about investing and finances. The views reflected in the commentary are subject to change at any time without notice. Nothing on this website constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security.