The Super Terrific Happy Hour

I hear you.
Idea: Allocate different percentages of buying power according to certain criteria.
Eg: low volume stock max 10%, low conviction ideas 5%, high conviction 20%, etc

 

Hey guys!

I've been a long time lurker here and love this thread and have followed it since the beginning. I don't ever post because I swing trade almost solely VIX ETPs and hedge (UVXY usually). You guys should definitely consider shorting vol on Monday. We had a major run up this week in the UVXY and as long as nothing happens by Monday it should take a dirt nap. By my calculations, the UVXY has lost an average of around 3% every Monday in 2017 and this Monday will probably be on the higher end of the range (This calculation is based on Friday close to Monday close). Good luck to you all this week and hopefully we see 2500 before the end of Friday!

 

(Now that is allowing me to post, I'll continue our conversation here)

Yeah, when I built my first VIX ETP strategy I built it on the SVXY. After realizing that a 60% move could create a margin call for Proshares, I decided to continue researching and looked into the UVXY. I am very surprised there isn't more talk about using it as an investment vehicle for retail. Like you said before, it pretty much just goes down all the time.

 

I'll go ahead and throw in a caveat here as well. I wouldn't naked short without hedging unless you plan on just watching the position. I attached a chart going back to 2007 and as you can see, the UVXY moved up more than 500% in the 08-09' area based on simulated data. Not something I could personally stomach

 

MT... are you thinking the VIX is heading lower this week then?

 

I think it's more likely than not. However, that is the importance of a good hedge. This week could be the "BIG ONE" however so could every other week so I stay hedged 24/7. It was hard not to take my hedge off and realize my gains this last week, but then I'd be high and dry if NK decides they want to take a shot at us.

 

Well guys, you win some you lose some I guess. We'll see how the rest of the day plays out but so far the S&P has dropped like a rock this morning.

 

Looking at the ES as a short if it sets up on the other side of 2466.

 

It's never a good day when my index positions are winners.

 

I'm a donkey when it comes to day trading. I'll just start posting all my daily calls here and you guys can fade me and retire by 2018