honkhonk81 12:58 pm on Wednesday, March 30, 2016
Tags: ContangoETFs ( 446 ), ReverseRoll ( 144 ), ReverseRolling ( 14 )

$UVXY I’m short the weekly…

$UVXY I’m short the weekly 26.0 Put. I’ve rolled it out twice already. Does there come a point when you have to take the loss, or do you just keep rolling it out. I’ve never experienced this before, where the stock just keeps losing ground.
Anybody?

#contangoetfs, #reverseroll, #reverserolling

Jeff 1:14 pm on Wednesday, March 30, 2016

Taking the loss is always an option. You could also take the stock and wait for next correction. The best bet for rolling is to roll when the option gets to be ATM rather than allowing it to get this far ITM. Also, with #ContangoETFs like UVXY, you should also consider #reverseroll into calls or a strangle; UVXY has such a downward bias that it’s very difficult to roll puts-to-puts multiple times.
- honkhonk81 1:22 pm on Wednesday, March 30, 2016
  
  $UVXY Hey Jeff, thanks for taking the time to help me with rolling these puts with other solutions. It is very much appreciated. I will look into these alternatives that you’ve suggested. ;>)
geewhiz112 1:25 pm on Wednesday, March 30, 2016

I have been in the position the last three weeks to be assigned UVXY after rolling a few times. In hindsight I should have sold it immediately from assignment. Tried to write calls but in this falling UVXY – upward all else market, not much premium. A look at the UVXY chart over a long time indicates UVXY does not seem to ever go up.
Other experience may vary. My experience , I hope, no one else has.
- honkhonk81 1:44 pm on Wednesday, March 30, 2016
  
  $UVXY Thanks for chiming in @geewhiz112. It’s another way to look at it.
prvtrader 5:45 am on Thursday, March 31, 2016

Take the loss and get on with your trading life.
While you have the losing position on, you are wasting your time worrying about it; time that could be used to find other positions that would make you money.
That is my 5 cts worth.