For diversification, as well as hedging against increasing volatility, I have bought 30 shares of the $SVOL with a limit order at $22.85 into the portfolio.
I came across this ETF during my vacations. It sells covered calls on the VIX. Do you think it is a good idea to add it to the portfolio to naturally hedge the portfolio when volatility rises?
I would leave it alone with such complex instruments. It has been proven that only the issuers earn money with them. And how the hedge actually works with falling prices can be seen in 2022. Trailing SL or SMA also do it. KISS.
