fuzzballl 7:56 am on Friday, August 18, 2017
Tags: LongPutDiagonals ( 56 ), SyntheticShortStock ( 108 ), VXXGame ( 769 )

UVXY

#LongPutDiagonals – Keeping the theta rolling in…

Bought to Close UVXY AUG 25 2017 29.0 Puts @ .25 (sold for 1.25)
Sold UVXY SEP 1 2017 31.0 Puts @ 1.30

#longputdiagonals, #syntheticshortstock, #vxxgame

fuzzballl 8:02 am on Friday, August 18, 2017

Added full position on this as well. Got the rest at 17.00 debit and sold the additional puts @ 1.30
Jeff 8:27 am on Friday, August 18, 2017

Oh yes, I forgot about this… I sold a couple Sep 8th puts already, but for this trade, I sold $UVXY Sept 1st 30 puts for 1.05.

Do you always sell your full load at once or will you ever scale in on the possibility of better prices if you wait?

#VXXGame #LongPutDiagonals #SyntheticShortStock
- fuzzballl 8:31 am on Friday, August 18, 2017
  
  My positions in these types of trades have never really been big enough to mess with scaling in. This particular UVXY trade is though but I sold them all at once anyway. I may look at scaling in in the future.
  
  Looks like the market is beginning to strengthen. This trade would work better on a gradual decline in UVXY but we may not get that…LOL
  - Jeff 8:40 am on Friday, August 18, 2017
    
    Still 17 months to go!
    - fuzzballl 8:43 am on Friday, August 18, 2017
      
      You betcha! I’ve got my target goal in mind (15x return on margin). If it gets there Fuzzy be happy!
      - vxxkelly 12:37 pm on Friday, August 18, 2017
        
        Hey guy’s, this isn’t a near term issue, but when UVXY gets steadily moving downward, and premiums dry up, it moves down faster than you can roll your puts to keep them OOTM and bring in a reasonable premium. How are we going to handle that? Selling those puts for some premium is a key to this whole approach working.
        
        fuzzballl 12:45 pm on Friday, August 18, 2017
        
        Same issue I’ve had on some upside plays with this strateegry. We’ll have to brainstorm on that. Maybe roll to strangles or something. Seems like as it gets down into the teens the downward acceleration slows a little. Maybe that’ll give us time for a few rolls.
        
        A nice backup is to have plenty of other short volatility plays on the board. With all my others I’m ok selling the front months a little tighter. If they get some heat many other positions working great.
hcgdavis 8:41 am on Friday, August 18, 2017

Not ready to roll the svxy calls yet, they still have 1.75 in time value left. Will roll next week.
vxxkelly 12:53 pm on Friday, August 18, 2017

I’m in at $17 (1 lot so far) and sold the Sept 1 $30 put @ $1.05 (followed @Jeff)
fuzzballl 12:56 pm on Friday, August 18, 2017

Looking at a similar trade on NUGT…unfortunately no 2019’s available. Only goes out to next March. Would probably work but I’d prefer more time.

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