hcgdavis 12:20 pm on Wednesday, June 7, 2017

Dust/Nugt question

So sell puts on DUST and calls in NUGT?

Have the SVXY/UVXY sorted out, thanks again those trades work well.

Ramie 12:37 pm on Wednesday, June 7, 2017

Short puts on SVXY/short calls on UVXY are short volatility trades to take advantage of selling into volatility spikes (which have not been very often or pronounced these days).

The DUST/NUGT trade is completely different. Because both of those are triple leveraged and have extremely strong headwinds/drag over the longer term, most of us sell calls on them when they spike and there’s decent premiums in way way out of the money calls. Sometimes you’ll see put sales on big moves down, mostly to offset existing calls, but the primary trade is short calls on spikes for both tickers.
- hcgdavis 12:57 pm on Wednesday, June 7, 2017
  
  thanks!
- hcgdavis 1:01 pm on Wednesday, June 7, 2017
  
  Have done well with the svxy/uvxy trades since you guys showed them to me. Yes we need more vol.

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