The coronavirus just refuses to die.
With a “second wave” reportedly hitting the world, the best way to trade the fear is by again trading volatility ETFs and ETNs. You can be sure that every time there’s a spike in new cases, deaths, and hospitalizations, it’ll be blared all over the major headlines, spiking fear even more.
Unfortunately, we’re headed back into bumpy waters.
With a new fear of shutdowns to shut down the coronavirus, a lack of clarity on the global economy, and the future path of the pandemic, volatility is likely to explode – again. We’re already seeing a resurgence across the U.S., China, and Europe. And without a vaccine to speak of, we could run into another substantial bout of pullbacks, and sky-high volatility.
That being said, some of the top ways to trade volatility include:
- ProShares Ultra VIX Short-Term Futures ETF (UVXY)
- VelocityShares Daily 2x VIX Short-Term ETN (TVIX)
- iPath S&P 500 VIX Short-Term Futures (VXX)
“The fear of the unknown catches more volatility than anything,” the firm’s chief market strategist told CNBC. “Volatility is going to tick up a bit into summertime.”