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Good lord. You people are arguing over semantics.

I am skeptical that past market tendencies have much predictive value any more. HF and algorithmic trading have changed the game. How much? I don't know. I'm in the camp of trying to align with the current trend (if one can be detected), while also paying attention to VIX and VIX futures.

Well, I've made pretty consistent money doing it, so I think it's a question of trade management as much as anything else.

Correct. Pick your expiry dates appropriately. Longer dated puts = lower theta. More capital at risk, though. What works for you? In my view, the shock risk of these instruments more than justifies the theta drag. Just be disciplined. Roll up and out (or down and out) and park profits...

Well, I think that is very foolish. There's just too much risk, as we've seen this week. Trading these vol products without a hedge is ridiculous in my mind. And let's not forget much of this discussion has been about hedging the ETF/ETN with VIX options, so options were already on the table.

I think some of you are overthinking this. If you want to short UVXY, buy UVXY puts. Stop monkeying around with VIX options as a hedge. They're just too disconnected. I've traded UVXY short this way for a couple of years, and SVXY long with long calls as well. It's not hard. Sometimes the...

Sorry, I didn't realize you were only referring to periods of backwardation. Agreed. Contango is the (long) SVXY investor's friend.

Maverick, I'm not sure I agree with the assertion that "when you are in the inverse ETF you are locking in losses everyday." I mean, the chart of SVXY pretty much negates that idea, doesn't it? Yes, the drawdowns can be significant (or "huge" as in the case of today) but it definitely has a...

Which products are you referring to?

Thanks. By "saved my ass" what I really mean is "I shouldn't have started legging into long-dated SVXY calls yesterday but I did and just got a really bad feeling towards the end of the day, so I delta hedged with weekly puts". Essentially, I was in a long straddle with different expiries...

SVXY is trading again. I was getting worried -- I bought some puts as a hedge late in the day yesterday and when they halted trading I was just sure they were going to liquidate and tell me to pound sand. Fortunately that didn't happen. Bought for $12 and sold for just under $67. Saved my ass.

What's the best (free) site for tracking legitimate pricing after hours? I'm sick of yahoo!.

Thanks. It's that "in almost all situations" thing that makes me wary. I expect it will play out the way you say, though.

Not sure I understand. Why would I want to take on a long position on something that might be worthless tomorrow? I'm concerned they will abdicate their responsibility on the puts, which by all means FEELS wrong, as they clearly knew the $ risk at $0 SVXY, but somehow the little guy is always...

I took on a small long (call) position on SVXY today, but hedged it with shorter-expiry puts at 2X the delta when it seemed like things were going south. In the event of termination, the calls are obviously worthless. The puts should be at max value . . . but I have a feeling I'm gonna get...

Can someone recommend a good site (good includes "cheap" or better yet "free") where I can chart spread and other combination pricing on a real-ish time, tick or minute level? Same for IV of a given option? Once optionsXpress got rolled into Schwab I lost these capabilities. I've looked at...

If they're so good at repairing trades, which is nothing more than taking on a new position, why aren't they good at the initial trades in the first place?

As this thread shows. After doubling down when the option price failed to climb with a significant early jump in the underlying, I am now at a significant profit and I am out. I am going to spend some time watching the manner in which IV/HV respond to price and get a better handle on this. I...

I held through that drop and sold half my position for a tiny profit a few days ago. I'm still sitting on the rest. My outlook has changed, not so much on the underlying but because I got clobbered on the option price via volatility. What I thought was a decent profit opportunity is now...

Liar. Or can you just not interpret a chart? Come on man, own it. Doesn't bode well for a "trader", but at least own it. You and your toadie were the ones gloating over my "bad call", so you can bet you're going to eat it now. Reap what you sow. Nice edit, by the way.