Best Way to Disaster Hedge a Short TVIX position?

Discussion in 'Options' started by Kirribilli, Sep 8, 2018.

  1. I use VXX and UVXY calls for my short positions in those underlyings, but TVIX has no options.
     
  2. just us 2x VXX option or 1.5x (I think) uvxy options.
     
  3. Robert Morse

    Robert Morse Sponsor

    Just play smaller.
     
    jys78 likes this.
  4. JSOP

    JSOP

    You actually need 1.3333333333333333333333333333333333333333333333333333333333 UVXY options for the hedge as UVXY's leverage is still 1.5 times the daily returns of VIX and TVIX is 2X the daily returns.
     
    jys78 likes this.

  5. thank you JSOP.