Understanding the VIX Call Ladder Hedge

The VIX call ladder hedge involves purchasing long call options at specific Delta levels and durations, creating a structured approach to hedging. By buying 10 Delta call options at 100 days to expiration and adding tranches at intervals, the strategy aims to mitigate risk over time. The podcast host adjusts the strategy by entering twice a month with smaller allocations, deviating from the original monthly entry suggestion. Despite variations, the core concept remains focused on allocating a fixed percentage of the portfolio for hedging purposes.