100k in the VXX
- Thread starter bat1
- Start date
This is kind of a "swing-for-the-fence" trade, so in that instance, I'd rather buy longer term OTM options (maybe mix in some verticals or calendars to offset some time decay) and keep a good chunk of my cash unexposed.
Right now you get about 5k shares off VXX for $100k.
You can get Sept 25 calls for around $330/contract, so you could control 10k shares (100 contracts) for around $33k and keep 2/3 of your cash completely safe.
If your move to 40 develops, you'll be just as rewarded as if you owned the outright shares.
If something bad happens, you get less hammered (thanks to gamma slowing things down as it moves against you).
Downsides are you're exposed to time decay and the spreads are not as good.
Right now you get about 5k shares off VXX for $100k.
You can get Sept 25 calls for around $330/contract, so you could control 10k shares (100 contracts) for around $33k and keep 2/3 of your cash completely safe.
If your move to 40 develops, you'll be just as rewarded as if you owned the outright shares.
If something bad happens, you get less hammered (thanks to gamma slowing things down as it moves against you).
Downsides are you're exposed to time decay and the spreads are not as good.
You CANNOT hold any ETN overnight. It erodes in value. Intraday only. Catango is a bitch, even with the leverage.
$100k? You're going to blow up dude. You obviously dont have any clue how hard this game really is. Maybe you were happy that you made $230 on a cash retail account last year once, but the road to being a profitable trader is much longer ahead. Put that money in an IRA and start learning full time for at least 9 months, then trade some of your money when you are sure you are ready. If you insist on going live, do it in $10,000 chunks. I guarantee you will straighten up after the second time you blow out your futures account in one day.
That's just hysterical nonsense.
So now we've gone from the hysterical cannot hold etn's overnight to shouldn't hold more than 2-3 weeks .
I say you are both wrong, it depends upon the conditions for buying in the first place . If those conditions still exist there it's not axiomatic to sell at predetermined arbitrary time.
hey but what do I know?
LMAO
okay pal hold it!
So how did that vxx thing work out for you today?
Down about 10% today by my info.