How is Long VXX not Free Money?

[Girija]

Then again it's possible to buy 52 sell 940 like I did in TVIX

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https://www.elitetrader.com/et/threads/vix-volatility-adventures-uvxy-revisited.357641/

Just sayin...

Tell us honestly how many times you did that. 52 to 940. That's a once in a life chance. Probability of getting struck by lightning is perhaps better than winning like that

 

[Girija]

Tell us honestly how many times you did that. 52 to 940. That's a once in a life chance. Probability of getting struck by lightng is perhaps better than winning like that

And the profit is only 4900?. When stock moved from 52 to 940?.

 

[Nobert]

And the profit is only 4900?. When stock moved from 52 to 940?.

How is this relevant to anything / what is the point that you're trying to make ?

 

[tsznecki]

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Whenever VXX makes an ATL, it eventually retraces the move. All one needs to do is simply buy on a decent move down on new lows. 13.50 is actually a conservative upside target. That is, if buying today at 10, it should eventually net 35%. Plus, this current level isn't even 'barely' a new ATL; its clean move down which means that its better. These opportunities don't come often.

Wow you must love being a masochist. The easier way is long SVXY or something equivalent.

 

[stockpredictor]

Disclaimer,

Unfortunately many people lose most of their money buying VXX or UVXY long, whether on dips, large drops, etc. There is literally no strategy that makes money going long VXX and would be profitable every year. While there are plenty of strategies that make money every year, including shorting VXX & UVXY (Seth Golden makes $millions this way). You also need to understand how VXX works and when/why it moves, which is mainly related to VIX futures contango, and has nothing to do with how stocks are being traded.
So I'm sorry to say but you're clearly wrong on this one.

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You may well be right. I won't be trading it regardless. One trader I know occasionally trades is; he says VXX is best on short timeframes if you can anticipate the spikes and other related volatility pricing aspects. Backwardation would help but the problem is that it hardly ever is, so.

 

[guru]

Then again it's possible to buy 52 sell 940 like I did in TVIX

Anything's possible every 15 years, but in the meantime you could be busy trading and making more money that you can't lose as easily

 

[Girija]

How is this relevant to anything / what is the point that you're trying to make ?

Read and reread. You will get the relevance.
To profit 4900 there are other ways that may be safe. When a total noob reads these, he may inadvertently assume it is really free money.

 

[KCalhoun]

this looks a bit overdone, i'm buying any 2d high

 

[Girija]

Read and reread. You will get the relevance.
To profit 4900 there are other ways that may be safe. When a total noob reads these, he may inadvertently assume it is really free money.

OK so I don't offend anyone including Ken, his initial bet was so small perhaps cuz he knew the risks. Got it? I didn't mean to offend and if that's what got conveyed my sincere apologies.

 

[Girija]

Wow you must love being a masochist. The easier way is long SVXY or something equivalent.

That also has drawdown risks. When vix futures enter backwardation svxy is a route to money assuming it won't drawdown further. Since the removal of leverage svxy is nolonger attractive. Going directly for futures may be better.