Is anybody playing yesterday's massive VIX spike long or short via futures, ETF, or options on them? Unfortunately I was having some tech problems when it happened, but upon resolution of those I did buy an inexpensive UVXY put with 17 minutes to go till the end of RTH. My rationale was that this administration has tended to poorly communicate and hype things RE Ukraine, and if there is not an invasion to start the week my cheap put will quickly gain some value. I do not plan to hold it but a few days either way. If I had been in place in the market I would have instead gone long a few VXM mini furures and closed out before the RTH close. Have any of you used the mini VIX futures much, and if so what have you learned from the process?
A followup on the UVXY put I bought. I did not mention it but part of my past training was as a Soviet-East Europe specialist, and I travelled extensively in that region long ago. My strongest sense about all of the recent headlines was that Nothing was as it appeared to be, so often the case in that region. I just woke up to the headlines about troop withdrawals, and noted that the UVXY pre-market is down around 13%. I will at some point today close out the put for a decent profit, but will note the term structure of the futures. Since they settle tomorrow AM to the actual VIX level it may be of advantage to hold on one more day, not sure yet. UVXY will also be completly exiting this current front month and start holding the next, so that is also a factor.
%% Good on VXX, VIXY.....; except selling ......SPY SEPT+ FEB maRH sometimes , let profits run, so dont buy the dip, scale in rip+ sell dip.