All of Fede Ruiz's Comments + Replies

What's an example of a volatility related instrument I could trade on right now? VIX index?

VIX options, VIX futures, or ETFs based on these, such as VIXY. The VIX itself doesn't really have an underlying asset, but it's based on the implied volatility of options. Various option spreads can work, like straddle-strangle swaps, but they're harder to use if you don't know what you're doing. Be warned, these do not move exactly like the VIX. For example, you have to pay the market a risk premium to hold VIXY, because the market pays you when it crashes. It's like buying insurance. If you think you can predict the timing of a vol spike, it's the right kind of asset to use, but over the long term, it's the wrong side of risk, and you will lose more money than you gain. Don't hold VIXY long term. I'm usually in the opposite position, SVXY, to collect that premium, but in small amounts relative to my portfolio size.
Technically any option is a volatility bet (from the view of the seller at least). But if you believe that volatility is going to increase then VIX is much easier.

This article is very persuasive. I happen to be in Montevideo (Uruguay) right now, and I shared it with a friend of mine who has a tech-startup in the city.

Uruguay has a pretty impressive startup scene. We are brainstorming ways of amplifying the message so the key figures in the scene are aware of the idea.

At the very least it planted the idea in our minds. We are going to do some research of how it could look like and probably post a followup article here soon.