Inverses for February selling: UVXY SOXS SQQQ

Discussion in 'ETFs' started by KCalhoun, Feb 15, 2023.


  1. You stepping to me?

    You really have no idea why most here are supportive of Ken, do you? I would have expected better from a Mensa International member. You might be happier posting your predictable two line(Tops) ad homs on another thread. However, you will be always welcome at my poker table.


    Ken's a maniac, maniac on the trading floor
    And he's trading like he never traded before

    On the ice-blue line of insanity is a place most never see
    It's a hard-won place of mystery touch it, but can't hold it

    You work all your life for that
    Moment in time, it could come or pass you by

    It's a push-shove world, but there's always a chance
    If the hunger stays the night

    There's a cold kinetic tick, struggling, stretching for the wick
    Never stopping with his head against the wind...


    ""
     
    #31     Feb 20, 2023
  2. KCalhoun

    KCalhoun

    Last edited: Feb 21, 2023
    #32     Feb 21, 2023
  3. KCalhoun

    KCalhoun

    nailed it $$$ day; tightening ts here at 11:42ET UVXY SOXS +++
     
    #33     Feb 21, 2023
  4. KCalhoun

    KCalhoun

    weeee uvxy21febbbb.jpg soxs21febb.jpg
     
    #34     Feb 21, 2023
  5. KCalhoun

    KCalhoun

    back in a bit, 600sh, ts 5.62

    uvxy21febdd.jpg
    uvxy21febhh.jpg
     
    #35     Feb 21, 2023
  6. This post will discuss how I perceive UVXY. My intention is to stimulate discussion or at least provide basic information on UVXY because it is an unusal instrument that can confuse traders not familiar with it. I am not looking to teach, provide advice, praise, or criticize any poster in this thread with this post.


    From https://www.proshares.com/our-etfs/strategic/uvxy

    Important Considerations
    The Funds are benchmarked to an Index of VIX futures contracts. The Funds are not benchmarked to the widely referenced Cboe Volatility Index, commonly known as the “VIX.” The Funds should be expected to perform very differently from the VIX or one and one-half times (1.5x) or one-half the inverse (-0.5x) of the performance of the VIX, as applicable.

    This fund is not an investment company regulated under the Investment Company Act of 1940 and is not afforded its protections. Please read the prospectus carefully before investing.

    This leveraged ProShares ETF seeks a return that is 1.5x the return of its underlying benchmark (target) for a single day, as measured from one NAV calculation to the next.

    Due to the compounding of daily returns, holding periods of greater than one day can result in returns that are significantly different than the target return and ProShares' returns over periods other than one day will likely differ in amount and possibly direction from the target return for the same period.


    The relative performance of an instrument can be compared to a index by dividing that instrument by the index. A rising line indicates that instrument outperformed the index during the period of time in question, for example.

    There are several ways to profit during bear markets. One can simply sell stocks and buy 4.5% plus treasury securities, short a long index ETF directly, buy a short index ETF, use an option strategy, buy a volatility ETF such as UVXY, among other possibilities.

    As a thought experiment, let's consider the relative performance of long UVXY position compared to being long a short SP500 index ETF, such as SH, for the last 52 weeks. Looking back fifty-two weeks ago, we can set the relative value of UVXY/SH to 1.00. As of Monday's close, this relative value was .37, to the detrement of UVXY versus SH. Visually, UVXY's underperformance looks like a reasonably smooth declining equity curve. I wonder if there might be a trading strategy, either using underlyings or option strategies that could benefit from the aforementioned observation? At the very least, for bearish trades with horizons of over a day, it seems long SH is vastly superior to long UVXY.

    UVXY may have a place as a intraday hedge while one works a significant number of orders as they are repositioning their portfolio.
     
    #36     Feb 21, 2023
    KCalhoun likes this.
  7. KCalhoun

    KCalhoun


    the Big #1 reason UVXY is vastly superior to SH is leverage; SH 52 week range is17.8 - 13.6 (shit), while UVXY is 24 -5 (glorious). virtually no/minimal upside to SH long, vs quadruple upside in UVXY. it's a critical difference

    uvxy22feb.jpg sh22feb.jpg
     
    #37     Feb 22, 2023
  8. No entry time, no price, no targets, no stops, no track record, no execution = no interest. Same old junk. Still using self-adulation to refer to yourself as a "master" and rampant socioism to claim you have your own university?
     
    Last edited: Feb 22, 2023
    #38     Feb 22, 2023
  9. KCalhoun

    KCalhoun

    Great calls, I like uvxy soxs labd boil
     
    #39     Feb 23, 2023
  10. KCalhoun

    KCalhoun

    Great
     
    #40     Feb 24, 2023