hi michealmfranz.the VIX is a chart i use as a market sentiment...

hi michealmfranz.
the VIX is a chart i use as a market sentiment indictor.
yes you can trade the VIX as a hedge but do not forget you have other risks in the market place, company risk ect.
you could see 2 or 3 stocks in your portfolio trend down within a up trending market (wrong sector selection), in this case the VIX would not be a good hedge.
if i was going to use the VIX as a hedge i would trade US index cfds.
last financial year was one of my best years for trading. i am a level 4 option trader. i was selling rio calls (covered and naked) at $140, $130 was stopped out at $100.
selling call and put options over the share will give me a direct relationship with the share price.
if i am tec wrong and the sp moves in the opposite direction i can get out of the trade with a small loss because i have time decay working on my side.

have a good one

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