The VS TR 2x Long VIX Futures ETF (UVIX) is experiencing a notable uptick, driven by heightened market volatility as investors brace for potential policy shifts under the incoming Trump administration. The anticipation of extreme policy changes is contributing to increased volatility in the stock market, which is beneficial for traders leveraging volatility indices like the VIX. Ivan Scherman, a hedge fund manager, highlights a strategy that capitalizes on the divergence between the S&P 500 and the VIX, which has shown a 75.3% win ratio in backtests. This strategy is particularly relevant as the market navigates the uncertainties of the first year post-election, a period historically associated with elevated volatility.
The current price of UVIX stands at $3.39, marking a 6.27% increase from the previous close.