Yes but your short UVXY how are you gonna cash in on a black swan event?? when that event takes place UVXY gonna go UP
It will go up (temporarily, albeit it might be a long wait, and I also might get called, especially at IB) but only to where I place the OTM calls, right? I could roll up further at that point or just wait for the vol up spike to spike down. This isn't necessarily a profit-making trade, it's a disaster-prevention trade if my stops get blown through or it happens after hours. Thoughts?
I am long 300 UVXY (average 10.40) and sold 3 11.50 calls so any down movement pretty much offset by my short calls. I am just waiting for the calls to expire, SP seems to be toppy but I do not expect a huge move in the next few weeks.