fuzzballl 9:59 am on Tuesday, February 2, 2016

Whew…back after a long week!

On the road last 6 days…catching up on all the action. Might actually be home for a day! LOL

vxxkelly 10:42 am on Tuesday, February 2, 2016

You didn’t miss much. Market just didn’t present many opportunities, I just listened to the sound of Theta working hard for me. Things are starting to look a bit more sporty today. Getting ready to start selling some $UVXY calls. If there is more downward follow through tomorrow, premiums should start getting pretty nice again. Would really like to see $UVXY above $45 before selling any qty’s of calls.
- fuzzballl 10:48 am on Tuesday, February 2, 2016
  
  Sounds good. I’m just sitting on UVXY call spreads and short puts and SVXY covered calls and a little NUGT along with a few 1550/1525 SPX spreads out in April. A few other odds and ends but not much. On call all of Feb so things are pretty crazy so far….staying small!
  - vxxkelly 11:43 am on Tuesday, February 2, 2016
    
    I’ve started selling off my $SVXY long stock into strength. It is just trading terribly and won’t get better if the market stay’s choppy. If you get very far OOM, the calls are just worth nothing, so once the covered calls expire it is very hard to replace them. Sold some Friday afternoon and some more this morning at the open before things went very far south.
    
    If $UVXY gets real sporty, I’m going to use your call spread approach to add some additional short term exposure.
    - fuzzballl 11:54 am on Tuesday, February 2, 2016
      
      Also with UVXY, it’s interesting how the IV increase on big down days really even pumps some value into the puts. Last batch I sold was Feb 29’s on Jan 22nd and the whole time UVXY was dropping after that the puts were actually getting more and more profitable. Trying this again today betting IV getting sucked out on the next rally will actually hurt put premium…unless of course UVXY REALLy tanks.
      
      Sold UVXY FEB 26 2016 30.0 Puts @ 1.03 (starter size)
      
      Also, if these get threatened the short future I sold this morning will be up big so decent risk hedge here which will easily cover the cost to carry the short future (if the VIX returns to contango…otherwise cost to carry a short future is a credit in backwardation)
      - fuzzballl 11:59 am on Tuesday, February 2, 2016
        
        oops…edit:
        
        (if the VIX returns to backwardation…otherwise cost to carry a short future is a credit in contango)
        
        🙂
        I think…confusing myself even…LOL