For those affect by #SVXY# last year, I was contacted by an attorney in NYC who is filing a class action suit. If interested, here’s his contact info:
For those who got assigned SVXY at adjusted cost below $50, have you considered a trade like this?
-Sell the stock at market price
-Sell leap puts Jan 2020 at your adjusted cost strike, for example 50Put for $36.50
-Use the proceeds to buy 5 Jan 2020 leap calls at 15 for $6.00ea=$30
The rest of cash will go back into your account.
Since we already lost the money, selling this put would not create more loss.
If I understand this correctly, the B/E would occur when SVXY reaches about $26 at expiration or less if before expiration.
Main risk is that SVXY does not reach $26 by Jan 2020
Would something like this work?
SVXY has wiped out my trading account. I will be getting a margin call which I can’t cover. What happens now? (All the rest of my money is tied up in IRA or 401k.)
Thanks for any advice.
WOW svxy is down 75 point – I did not see this coming. With the boat weight so short volatility is there any expectation of a bounce tomorrow? I have 100, 90, 70, 60 put sitting out there. ouch. Thanks Laura
Is today with vix at 12.93 and rising a good day to sell puts in this product?