fuzzballl 12:09 pm on Wednesday, February 1, 2017

SVXY

Interesting predicament here…

Originally bought a 2019 call with the intention of selling front month calls against it. As you know SVXY has been screaming up. I’ve rolled the call out to June but it’s still not enough. It’s just about offsetting my call profits….Grrr.
To get it out of the way I’m thinking about rolling it out to Sep or next Jan to a DITM 20 wide put spread. Then…I can book the profits on the long call at some point and worse case scenario I’d own a little SVXY at a basis of about 18-20 dollars above where it’s trading. If it doesn’t tank and keeps rising it would be a bonus.

Am I crazy?

Looking at:

BTC SVXY June 115 call and STO Sep 225/200 BuPS @ 1.75 credit. Or…can go out to Jan for a 20 wide.

jsd501 12:11 pm on Wednesday, February 1, 2017

What ever you do, good luck.
- fuzzballl 12:18 pm on Wednesday, February 1, 2017
  
  Thanks! I think I’m willing to carry the put position for however long it takes in order to preserve the huge gain on the long call. I look at the SVXY position a little different than the AMZN and GOOGL trades. SVXY can lose half it’s value in a few days so it’s a little more short term for me.
  - jsd501 12:26 pm on Wednesday, February 1, 2017
    
    If it were me and I could get out even or a small profit, I would get out and look for a different trade.
Jeff 12:29 pm on Wednesday, February 1, 2017

This thing swill drop 20 to 50 points on a correction. I’m okay being underwater on short calls until then.
- fuzzballl 12:33 pm on Wednesday, February 1, 2017
  
  That’s my concern…I’m trying to preserve my profit on a long call position. If we tank and my short call comes back to earth, I’m giving up about a 25 point gain on a long call position.
jsd501 12:44 pm on Wednesday, February 1, 2017

I am short the 40 puts in March, the 55 puts In June, and small amounts of puts in January as well as some naked calls in January from 180 to 225 strikes. I prefer to wait for the VIX to leap up to 30 or higher and then buy the SVXY because I know that no matter how long it takes, volatility will always come back down.
- fuzzballl 12:47 pm on Wednesday, February 1, 2017
  
  I prefer that too…LOL Don’t think I’ve ever had a big profit on a long call on SVXY. Never did a long call diagonal on it before. Would’ve preferred a gradual rise to sell the front month.
  - jsd501 12:50 pm on Wednesday, February 1, 2017
    
    You know that old saying, “your first loss is your least loss”.
    - fuzzballl 12:52 pm on Wednesday, February 1, 2017
      
      But I’ve got a 50 percent gain on the long call…LOL (and rising)
      - jsd501 12:53 pm on Wednesday, February 1, 2017
        
        Okay, you never go broke taking a profit.
fuzzballl 12:55 pm on Wednesday, February 1, 2017

Filled on the roll…I’ll type it up shortly. 🙂 Love all the input! Always afraid I’m missing something.
- jsd501 1:11 pm on Wednesday, February 1, 2017
  
  I think I know one thing. This administration does not have a lot of experience running the government and will have some problems down the road. When that happens, we will get a correction some time this year. I do not know when but feel certain it will happen and I want to have ammo to take advantage of the move. So, I am waiting to make my move in the SVXY and staying on the sidelines with small positions.