Stop Thinking.
and ...just do it.
Time is money.
i hear you but that's not me when it comes to trading. I am not wired to rush in without completing research which is still at an early stage.
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Please comment on this simple volatility strategy
- Thread starter londonkid
- Start date
i hear you but that's not me when it comes to trading. I am not wired to rush in without completing research which is still at an early stage.
just trying to help. I got a million of them. They always start out, "What if I just bought when it was x and sold when it was y. An awful lot of energy is wasted trying to escape the reality of gambling.troll denied lol congrats for the first moronic post in the thread.
just trying to help.
of course you are. troll denied.
sorry, thought you were asking for commentsof course you are. troll denied.
sorry, thought you were asking for comments
comments not trolling. well done for looking like a turd.
ok, but you're the one who claimed to have a million dollars and then asked on ET what to do with 100k of itcomments not trolling. well done for looking like a turd.
ok, but you're the one who claimed to have a million dollars and then asked on ET what to do with 100k of it
no your an idiot. I did not claim to have $1m, it was an example for ease of numbers. FYI - I have managed OPM for last 16 years. congrats for looking like the biggest tool on ET and hijacking the thread.
16 years and you are still asking for opinions on ET about hairbrained vix mechanical strategies?
goodbye, enjoy your fantasy
you can say goodbye but you are still an idiot. I have never traded volatility before. I am not authorised to trade volatility on behalf of clients. It's a discussion forum where I expected a minority of posters to post with value. i.e. sellindexvol66 replies to this thread.
of course the majority are losers and some of them go rogue, this isn't going to change. A quick glance at your content I can see what's what, it's called being an immature emotional thinker. congrats.
I think it's clear to everyone reading this thread who is the loser and what is commonly known in these parts as a c***.
Now please leave this thread and go troll elsewhere. It's not my fault your are a loser, get over it and find a way to deal with it.
$100k starting capital. Wait till VIX goes back down to 12 and invest 100% into long Vix futures. Do not have a stop and leave the position running. Take profits when VIX hits 16. rinse and repeat.
Suppose the investor/trader is willing to suffer unlimited drawdown and the $100k is 10% of their liquid net worth.
Can anyone point out the risks/downside to this?
Thanks
the kid
I did this trade last year - the risk in this trade is the cost of the roll waiting for the spike in vol. The trick is to find a way to reduce your cost basis each month. I sold ~15 delta VXX puts to offset the /VX drag (I'm sure there are other ways to reduce your cost basis, but this was how I did it). So if the spot is at 12, you are selling 11 VXX puts. It doesn't perfectly cover your roll cost month-to-month, but it does help offset part of that cost. I would sell the position the first day the VIX spiked over 15.
Another variation (full disclosure, I've never put this variation on so I don't know if it would work in practice) would be to sell that 15 delta VXX put and use that to finance the purchase of a VXX call spread in a close to cash-less transaction. I forget what the skew was, but my best guess is that with VIX at 12, you'd be selling an 11 put to finance to purchase of a 14-15 call spread.
It is a profitable trading strategy in the long run if you reduce your cost basis and offset the drag cost. I'm not sure if it is profitable if you don't offset the drag cost. The only downside is having it not work for 5-6 months and giving up while you still have a loss.