Should I unwind this UVXY spread?

Discussion in 'Options' started by Libranalysis, Feb 7, 2017.

  1. Hi,

    I've been in VIX school, and the tuition has been somewhat high. Since I'm already flunking out, I should ask:

    Should I buy to close the 10 put and hang on to the 5 put? (this was purchased pre 5:1 split so the real values are 50 and 25). I don't see VIX spiking to any meaningful number that would help this trade soon.

    upload_2017-2-6_21-56-22.png
     
  2. UVXY tends to do one thing: go down. What's the delta on the $5 (now $25) puts?
     
  3. truetype

    truetype

    What was your plan when you entered the trade?
     
  4. Thanks for the replies. Part of my confusion came from the 5:1 split and ending up with ns20/100 options instead of the standard ones I had. It turns out the max loss on this was 2k so I exited the trade. Lost $$$ but gained several valuable lessons.