$2x Long VIX Futures ETF(UVIX.US) dropped by more than five points. With the VIX suppressed near its low of 17, leveraged products betting on volatility naturally bleed out. When the market is this calm, holding such tools means suffering daily erosion from time value and low volatility. When should you allocate some for hedging? My view is: don't stubbornly hold at the left side of a low VIX—it's suitable for short-term trades before events. Long-term holding will inevitably lead to losses. If you really want to hedge, it's better to wait for volatility signals to emerge before entering 😵
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