Kelly 12:23 pm on Wednesday, April 13, 2016

$UVXY

Following Ramie.
BTC June $80 calls @ $.41, sold for $13.00
BTC June $85 calls @ $.37, sold for $14.00
BTC June $100 call @ $.27, sold for $11.00
BTC June $105 call @ $.21, sold for $10.00
BTC Jan’17 $170 call @ $1.67, sold for $9.70 (was early on this one so didn’t get great premium)

Meera 6:36 pm on Wednesday, April 13, 2016

With UVXY really low, are you selling any puts short or long dated?
- vxxkelly 5:29 am on Thursday, April 14, 2016
  
  I’m not selling any $UVXY puts at the moment. I was short some puts a month or so ago, but $UVXY was dropping so fast that it blew right thru them. I tried rolling them, but they just got back into trouble. Then I went to rolling the short puts into short strangles so that I could drop the put strike as much as possible, but the puts were still getting into trouble. So, I ended up reverse rolling them into short calls.
  
  Ultimately, as premium sellers, we get paid off when the option expires. So when I roll I want to keep the roll as close in time as possible since I want this thing to expire and get off the books (take my profits) as soon as I can. Sometimes I’d also increase the number of contracts to further drop the strike price. When I did the short strangles, I was only going out about 1 or 2 weeks, dropping the put strike price and a matching number of short calls for a reasonable premium at a strike I have some confidence in expiring worthless.
  
  @Iceman is very good at rolling his $UVXY puts out and down. He is extremely good at managing positions that are getting pressured and patiently keeps buying time and ultimately will work his way out of the positions for profits. I do it a bit different as generally (as best I can) I don’t want to push out the expiration any further than I have to. I want that position to expire as soon as I can so that money can get put to work on a new position. So I’ll try out and down but if that doesn’t work within a few weeks, then I start changing tactics going to strangles then eventually to reverse roll’s.
  
  Sorry this is so long, probably told you way more than you wanted to know.
  
  Kelly
  - Meera 7:11 am on Thursday, April 14, 2016
    
    Thanks for the details! I lost a lot of money in uvxy puts and it kept getting into trouble regardless of rolling down so now I am trying to slowly recover my losses. So was curious to see how others trade this product. Appreciate sharing your approach
    - Jeff 7:12 am on Thursday, April 14, 2016
      
      I have sold UVXY puts on the way down, and have rolled them into strangles… selling further down puts and also calls. Been able to stay even by doing that, even though some of the puts had to be rolled again.

Leave a Reply Cancel reply

s: search
c: compose new post
r: reply
e: edit
t: go to top
j: go to the next post or comment
k: go to the previous post or comment
o: toggle comment visibility
esc: cancel edit post or comment