OK, how do I buy convexity in the direction of the volatility decline? Put option on VIX or VXX, or put vertical, or something more complex?...
VXX was created in Feb'09 and SVXY, XIV and ZIV are even younger. As for next VIX spike to 80, it will take a chain of events similar to 2008 to...
Great article but I know this already. However,even SVXY is not leveraged in a multiple sense, I guess it may suffer from constant ups and downs....
I am not dead set on anything yet. I do however consider going short vol if and when it spikes high enough. How exactly I would do it - I have not...
Aha, you have a position in SVXY and you're getting emotional about it. Would you please share that position?
FAS uses futures to get 3x exposure. It suffers from whipsaws of the underlying index because if has to sell futures when they decline and buy...
I would agree wholeheartedly with everything you've said if you were referring to long volatility ETFs/ETNs. When I look at charts of TVIX or VXX...
That's why I am more inclined to sell SVXY puts when the market sells off rather than when it's rising: more premium for the puts and lower...
Today? Today SPX is down 13 and SVXY is a little below 90. Mid 70 happened in the end of Feb and in mid April. Both times it recovered. Now,...
Yes, I am asking for help/options/criticism but I expect to see arguments that go beyond labels such as "reckless" or "risky". It it's reckless,...
Depends on the size of the legs and the probability. You don't think I would risk my life savings on such a trade, do you?
Sell the calls on SVXY? Why? It drifts higher as long as there is a contango in VIX futures. Selling puts makes more sense. Besides, I don't say...
No, I am not trolling. Limited risk is the exact reason I would rather sell puts on SVXY than calls on VIX.
Please elaborate.
What makes you think I don't understand the instrument? BTW, Buffet would not sell puts for SVXY but for different reasons - it's not a company...
Look at a longer term. Say 1 year. VXX is down 75%, SVXY is up 150%.
What is VXY? It's not a valid symbol. VXX has been almost flat in the last 4 months as well. Since Feb: VXX went from 23 to 18.5...
Can you make a case for SVXY to go to single digits? Last time we had a decent sell off was in Jul-Sep of 2011. S&P went down from 1350 to 1110...
I assume that you're talking about a straddle or a strangle. If that's the case and you want to hold your position for 2-4 week than buy it with...
The longer the expiration the less is time decay. But what is your overall strategy/expectations? Do you plan to hold until expiration or...
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