ALVH — Adaptive Layered VIX Hedge
Multi-timeframe VIX call hedging strategy for Iron Condor protection
A first-of-its-kind multi-timeframe VIX call hedging strategy that layers short (30 DTE), medium (110 DTE), and long (220 DTE) VIX calls at 0.50 delta in a 4/4/2 contract ratio per base unit of 10 contracts. Designed to protect Iron Condor and Covered Calendar Call positions from volatility spikes by providing comprehensive coverage across fast drops and prolonged volatility events. The ALVH cuts portfolio drawdowns by 35–40% in high-volatility periods at a cost of only 1–2% of account value annually.
ALVH works by holding VIX call options across three distinct time horizons simultaneously. The short layer (4 contracts, 30 DTE) captures fast volatility spikes. The medium layer (4 contracts, 110 DTE) covers sustained high-VIX environments. The long layer (2 contracts, 220 DTE) provides protection against prolonged market dislocations. All positions are opened at approximately 0.50 delta, keeping costs predictable. Each layer has a defined roll schedule: short at 15 DTE, medium at 55 DTE, and long layers become medium protection when they reach 110 DTE — at which point fresh 220 DTE calls are added. On VIX spikes above 200% gain or VIX > 85, positions are sold for profit and re-opened during the next calm period.
