Jeff 6:50 am on Tuesday, May 24, 2016

UVXY – new all-time low,…

UVXY – new all-time low, breaking below 12.80 that was set on May 11th

Option Iceman 6:56 am on Tuesday, May 24, 2016

UVXY/SVXY – no new YTD high on $SVXY yet. Needs to exceed 58.12
Jeff 7:54 am on Tuesday, May 24, 2016

Also an all-time low in VXX, breaking below 14.64 from 5/11.
Meera 6:14 pm on Tuesday, May 24, 2016

I would like get your thoughts on UVXY. One of the biggest mistake I made this year is to sell short puts against UVXY and it has not panned out for me. I am short June 11/10 put spreads. I am contemplating if I should get out of the trades now or wait for a week. With SPY still going strong, the asset is decaying at a much faster rate than I anticipated. Would love to hear your thoughts.
Also, could you give me access to contribute to the blog?
- Jeff 10:08 am on Wednesday, May 25, 2016
  
  Hi Meera… sorry I missed this comment until now.
  I don’t think selling puts on UVXY should be your biggest mistake. When UVXY is this low, it is not tough to get out of underwater puts. I would always avoid getting underwater puts with UVXY above 20, but under 20 is easy.
  
  You have three weeks until expiration and anything can happen. You can roll them down and out to a future expiration, or you can sell your long 10 and take assignment of the stock at 11, which will give you a pretty low cost basis. In any case, you max loss is only $100 minus whatever you sold it for.
  
  Just so you know, I am underwater several naked puts, all with June 17th expiration. I occasionally close one or roll it into naked calls, but it is not too worrisome because puts on low cost stocks rarely can be disastrous.
  
  Yes, i will invite you to become an author. look for emails!
Meera 1:55 pm on Wednesday, May 25, 2016

Thanks much Jeff for your input!