Jeff 1:15 pm on Friday, December 18, 2015
Tags: VXXGame ( 769 )

UVXY after hours

#VXXGame filled at 4:12 ET

STO $UVXY Dec 24th 50 calls for .67
STO $UVXY Jan 15th 150 calls for .85

mikesspamlessemail 1:31 pm on Friday, December 18, 2015

Probably a good move. I ate a loss on the UVXY 55 expiring next week, somewhat offset by selling some 70 expiring next week. Hard to believe even the January $170 are going for 60 cents. Need VIX futures to sustain a move into the 40 area to make that happen. Not impossible, but not likely. I think the backtested data shows UVXY would have gone up about 2000% in 2008/09 crash, but over a much longer period.
Still think the next interest rate move is a cut, but not sure how that will be interpreted.
- fuzzballl 8:06 pm on Friday, December 18, 2015
  
  Funny you should mention VIX futures…I think I’m going to quit shorting UVXY naked calls and concentrate on the futures. I believe a person could short a few contracts each time it spikes above 25 and do pretty good much more safely without the constant UVXY spike worry.
  
  A VIX future trades at a value of 50 dollars per tick with each tick being .05 This makes them worth 1000 dollars per point. Instead of sitting year round with big short UVXY exposure just wait until the 2 or 3 times a year we get a spike in the VIX futures 20-25 range and short a few. Imagine shorting 5 of those in late August and catching about 10 points of the move. Seems a lot safer without the constant black swan risk.
  Of course your account would have to be able to withstand the daily mark to market of the futures if you short to early plus margin of about 6000 per contract.
Arthur Krumholz 1:24 pm on Saturday, December 19, 2015

Hi Jeff, I thought I was on your email list, but haven’t received any, so I guess I’m not.
krumholza@bellsouth.net GOOSE