I'm currently listening to the All In Podcast, and Chamath Palihapitiya said the following:

"You buy volatility and short stocks when the VIX is below 20. When the VIX is in the 30s, you short volatility and buy stocks."

Let me know if I'm understanding this correctly – during times of low volatility, you should short stocks in preparation for volatility to enter back into the market. Volatility rising is a signal that money is moving around the market. So during times of high volatility, you should buy back in because we have likely reached that local bottom.

If I'm understanding correctly, here's the play I'm considering. Today, $TSLA is down ~6%. My initial instinct was to buy at the end of today's session for what I assume will be a green day on Monday. But the VIX is currently sitting at 21. So I should technically short TSLA in preparation for volatility returning to the market, based on the above logic.

Am I properly understanding this? And is this something you agree with? Thanks for the help.