‘Volmageddon’ Is History as SEC Greenlights Leveraged VIX ETFs

Two infamous stock volatility strategies on Wall Street look set for a comeback -- with protective buffers this time round.

The U.S. Securities and Exchange Commission has approved rule changes that pave the way for a pair of ETFs from Volatility Shares LLC to list and trade. The two products will offer leveraged bets on the Cboe Volatility Index, or VIX.

The first will allow investors to short VIX futures -- a popular way to bet on calm markets. The second is an amplified wager on the opposing trade: a jump in volatility.

If they sound familiar, it’s because they ...