I have been jumping in each time the /VX switches from Backwardation to Contango. Has worked for the last 3 years without incident. (I did not trade the French election, however): Caveat: I always exit with a price target, so do not catch the full move.
SVXY
- Thread starter stockoptionstrader
- Start date
The /VX? The VIX you mean? Where do you look at, do you use vixcentral.com? And are you trading options or you just buy the stock SVXY then?
Not VIX, but the /VX Futures. VIXCENTRAL is good reference for observing front two month /VX futures and their contango relationship. These are the products that influence SVXY pricing. I wrote a study for observing, but VIXCENTRAL has the same info. The signal referenced suggest a relatively low entry price, as well as a possible time delay till the next big event, as Backwardation is relatively infrequent. -- I have been trading the stock, but may re-evaluate call options now.
I bought the SVXY 01/17/2020 75 calls. I think it's win big or lose it all. But I'm aware of that, do you think it's a good buy or do you like to buy more at the money options?
I give you this , they are cheap enough at 20 c if thats what you paid. No real bargain, but I'd suggest not putting 1/2 your net worth in them
That is not what I would do... However, our goals and criteria are different AND are subject to change. I am still figuring out what makes sense for me, so my advice should be given very little weight.
Don't feel bad, except for me, everyones advice here should be given very little weight
I bought them at 65 cent, so I guess I'm screwed.
Any data to explain what is happening with SVXY today? -- Yesterday's info suggested it would be -0.5X (instead of -1.0X), however today it seems to have lost the "sign" and multiple!