fuzzballl 12:28 pm on Wednesday, February 7, 2018
Tags: LongCalls ( 495 )

SVXY

#LongCalls – I’ve got some risk in this ticker so what’s a little bit more. If we get a decent recovery this should help considerably getting back to even sooner. With put skew right now this seems like a decent shot. Leaving it uncovered for now…

Bought to Open SVXY JAN 17 2020 40.0 Calls @ 2.60

hcgdavis 12:43 pm on Wednesday, February 7, 2018

At lunch time I was looking back at price history. SVXY traded as low as low 20s in 2014 and 2015 and as high as 168 or so pre-split.

As long as they stay in business, I think we all have a decent shot at recovery in 1-2 years.

I will say, once I am half way there I will be hedging anything left in case this happens again.

Now it is so low even a 1 point gain is 10% so may not take too long to get back in 40-50 range.

I hope and of course this assumes no big volatility shock again 🙂
- jsd501 12:50 pm on Wednesday, February 7, 2018
  
  The problem that I see is that we might be in a bear market for stocks. Look at the 10 year treasury, which is now at 2.84% going to 3%. I hope that it holds at 3% but if it goes to a higher yield, kiss this market good by until we stabilize.
Jeff 3:23 pm on Wednesday, February 7, 2018

Regardless of where you think SVXY may go, up or nowhere, it’s probably best that none of us expect to make all that we lost off the same symbol. I’ll hold my SVXY stock, but I’m not going to be squeezing much more than that. I’ll focus on other symbols that aren’t based on derivatives to the nth power.
- Jeff 3:24 pm on Wednesday, February 7, 2018
  
  For instance, just made $945 on TSLA strangle. That pays me back some of my SVXY loss!
- hcgdavis 8:09 pm on Wednesday, February 7, 2018
  
  I do not plan on holding long term. In fact if I can just get back 25-50% I will close out and move on.
  
  As we discussed earlier, will only trade this hedged from now on but now that I see how much damage it can do to an account (more than 50% loss in one) I will only trade it cautiously with house money hedged positions.
  
  This was like enron, except there at least some of the bond holders got a little back.
  
  Didn’t think it would happen that quickly and the hugely frustrating thing is the move happened after hours, then they shut it down so we could not do anything with it.
  
  I was comfortable taking it at 70, but to drop to 10 WTF?!?!?!?!?
  - hcgdavis 8:10 pm on Wednesday, February 7, 2018
    
    At least it is still open if limping, but the people holding XIV, they have no chance of any recovery.
    
    Looking at the options the call premiums deflated and will take some time to be worth selling.

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