How to Prep for Another Round of Extreme Volatility

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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.”

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