Or several of the airlines can declare chapter 11, as almost all have at least once before. The company remains, but common shareholders go to zero and don't come back when the company comes back.Buy JETS then: https://finance.yahoo.com/quote/JETS/
If you're betting on volatility calming down, you're betting on the economy recovering as a whole, which means airline companies too. So JETS used to be about $30 a share and now it's half of that... you could make even 100% on your bet, instead of 40%. And at least with stocks, if your bet doesn't hold, you can just let your money float there until they rebound. Now some may not but airline companies? If economy recovers, they will recover too. Only question is when that will happen
How is shorting VIX right now not free money?
- Thread starter seakraken
- Start date
By default you're already short the VIX, by just being naked long equities in your stock/retirement portfolio. The "free money" to be made was back on the March lows when the VIX was printing close to all-time highs at 80+.
In this new market regime where there's so much uncertainty and zero future earnings visibility, the VIX is probably a screaming buy when it dips in the 20s. I don't see it going back below 15 (it's approx. long-term average) anytime soon.
In this new market regime where there's so much uncertainty and zero future earnings visibility, the VIX is probably a screaming buy when it dips in the 20s. I don't see it going back below 15 (it's approx. long-term average) anytime soon.
I like your second level thinking.
You might very well be right about VIX long-term, but margin buying SVXY for the long haul? I can't think of a surer way to lose $$. One volatility "event" and you will find yourself in a completely unrecoverable situation.
Never understood why option sellers will continue to aggressively sell premium even with the VIX below 15. You are essentially doubling down on your long equity portfolio near the market highs. You should be doing the exact opposite to protect your paper gains in your long only/retirement equity portfolio.
Then they wonder why they lose more than half their net worth (retirement account + trading account) when the market crashes.
depends what they’re selling, Georgy.
just because VIX is below 15 doesn’t mean there’s not some juicy risk premo laying around
My cousins cousin was one of the developers of the XIV. He is a very jolly fellow, for some reason at family get togethers he’d always be galavanting and skipping around like a jolly old fellah. Damn phynanciers.