Betting Long on Volatility Is Still a Sucker's Game

Traders have been trying to make a big score buying volatility when it is low and looking for the ultimate move to the upside, dreaming of a 2008/09-type move when volatility took off like a rocket ship into space.

In 2008, the volatility index VIX hit unprecedented levels, well over 90 as it appeared the world was coming to an end. That bet failed, and the play on higher volatility since has mostly been a wrong way play, as big spikes in volatility have been short-lived. We saw a couple of these moves in August, and volatility sellers once again took advantage....471 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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