The Election Playbook is one that offers unique trading opportunity. The elections do bring heightened risk, hence when we look at past elections we can see that the #VIX structure changes. The cost of protection rises as more portfolios look to buy up safety and protect profits

into the elections, typically starting once Northern Hemisphere returns from summer vacation. We are seeing a repeat of the 2016 market cycle in that equities rallied in the early part of the year, paused and retraced 5% heading into the election as hedging took place.

Post election result the rally ensued. We are positioning for a small correction in September/October in the SP500 and Nasdaq combined with longs in the VIX and then putting longs back on, post the election result. #trading #investing #playbook #Election2020