Ramie 9:09 am on Thursday, July 6, 2017

SVXY Sold these near the open

$SVXY Aug 18 85 put @ 1.70
$SVXY Aug 11 85 put @ 1.20
$SVXY Jul 28 100 put @ 1.35
$SVXY Jul 14 120 put @ 1.30

brschultz 9:55 am on Thursday, July 6, 2017

SVXY = 154, 180 week SMA = 77.00. There is extreme downside risk here
- Ramie 11:06 am on Thursday, July 6, 2017
  
  This is an inverse ETF completely determined by /VX futures. It rises most of the time due to contango and has some periods of backwardation when it falls (those can be dramatic as you allude to as well). But this is a derivative of a derivative of a derivative of a derivative of a derivative. It doesn’t trade like a stock. I don’t consider a technical indicator like a 180 week moving average (that’s 3 1/2 years) to be particularly relevant here.
  - Jeff 11:17 am on Thursday, July 6, 2017
    
    Here’s the derivative string Ramie refers to:
    
    SVXY is a derivative of VXX, which is a derivative of of the VIX, which is a derivative of SPX put options, which are derivatives of the SPX index, which is a derivative of 500 equities. (so you actually could have gone with one more “derivative” in your sentence!)
    - jsd501 11:18 am on Thursday, July 6, 2017
      
      I am beginning to think that I am a derivative.
    - Ramie 12:14 pm on Thursday, July 6, 2017
      
      I missed a derivative! Could we even add one between VXX and VIX? VXX is derived from VIX Futures which are derived from VIX. Not sure if that qualifies but I’m looking for a diversion from my day job 🙂
      - Jeff 12:15 pm on Thursday, July 6, 2017
        
        Yes, that’s true… I often forget that step.

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