Posted by bluezango on 29th of Jul 2016 at 04:00 pm
Article Author claimed Short UVXY and TVIX
Read and article or two more about UVXY vs TVIX and
differences. The author disclosed that he and/or his firm was
Short UVXY and TVIX. Since these have built in capital
deterioration, short would be great, seems brilliant, but TD
Ameritrade does not allow it. If you wanted to, How?
Posted by frtaylor on 29th of Jul 2016 at 07:53 pm
The main alternatives are: 1. buy SVXY or long-dated deep ITM
SVXY calls; 2. buy long-dated ATM or ITM VXX puts (UVXY does
not appear to have puts). Do a search on Seeking Alpha using "SVXY
strategy," there's a good article on it by user "macro investor" or
something like that.
For a somewhat less risky, but much lower return strategy, do a
covered call (buy-write)(near month) on SVXY w/ the call perhaps
just OTM. If you get called away, rinse and repeat.
I've been buying a little svxy on recent minor pullbacks. As
long as the futures are in contango (see macro's article), it works
very well. Because UVXY degrades so dramatically, SVXY has been
going up while the market has just sat over the last week. But
dyodd, and watch your position size. You can hedge with VIX calls
if you wish (not VXX calls!). I have been wanting to back test
buying SVXY when Matt's Spy Pro goes long. I've made more $ trading
SVXY in the last month than I have trading anything else in the
last year. But I'm a lousy trader, and I have a very small IRA, so
we're not talking about a lot of absolute risk. Another strategy
would be: as you reach 100 sh of SVXY (by adding to your position
on pullbacks), look to sell a call against it (near month) when the
market is really overbought or after a big up-move. You may get
called away, but you'll collect the credit, and if it pulls back
you get some downside protection as the call drops in value.
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Article Author claimed Short UVXY
Posted by bluezango on 29th of Jul 2016 at 04:00 pm
Article Author claimed Short UVXY and TVIX
Read and article or two more about UVXY vs TVIX and differences. The author disclosed that he and/or his firm was Short UVXY and TVIX. Since these have built in capital deterioration, short would be great, seems brilliant, but TD Ameritrade does not allow it. If you wanted to, How?
The main alternatives are: 1.
Posted by frtaylor on 29th of Jul 2016 at 07:53 pm
The main alternatives are: 1. buy SVXY or long-dated deep ITM SVXY calls; 2. buy long-dated ATM or ITM VXX puts (UVXY does not appear to have puts). Do a search on Seeking Alpha using "SVXY strategy," there's a good article on it by user "macro investor" or something like that.
For a somewhat less risky, but much lower return strategy, do a covered call (buy-write)(near month) on SVXY w/ the call perhaps just OTM. If you get called away, rinse and repeat.
I've been buying a little svxy on recent minor pullbacks. As long as the futures are in contango (see macro's article), it works very well. Because UVXY degrades so dramatically, SVXY has been going up while the market has just sat over the last week. But dyodd, and watch your position size. You can hedge with VIX calls if you wish (not VXX calls!). I have been wanting to back test buying SVXY when Matt's Spy Pro goes long. I've made more $ trading SVXY in the last month than I have trading anything else in the last year. But I'm a lousy trader, and I have a very small IRA, so we're not talking about a lot of absolute risk. Another strategy would be: as you reach 100 sh of SVXY (by adding to your position on pullbacks), look to sell a call against it (near month) when the market is really overbought or after a big up-move. You may get called away, but you'll collect the credit, and if it pulls back you get some downside protection as the call drops in value.