UVIX sell puts...a joyful moment
- Thread starter S2007S
- Start date
Been hitting SVIX now that it has some juice back.
Are you truly joyful?
How did UVIX manage to drop from 1300 to 8 in just 2 years?
Those who shorted it months ago should be laughing all the way to the bank.
On 2 Aug 2024, UVIX tried to rise from the grave but the Kingdom of Hell
pulled it back to the grave.
UVIX started trading in 2022, 2 reverse splits, show me a vix product that has never had a reverse split. When markets are in a low level of fear and complacency is sky high yes these volatility products will completely fall apart over and over again....
Uvix is easily a hard to borrow trade and I believe most doing it need be aware of those fees, I believe I saw tbem as high as 30% so yes you could short all day long just have bank to pay for those fees while borrowing against kt.
I shorted VIXY and VXX the morning the vix surged above 65...
Markets are not done selling off...im doing sell puts on UVIX and don't. Ind getting assigned shares if i do and also don't mind rolling out my options for additional credit as I know volatility will spike again causing UVIX to spike once. At that point if it's a 30%-40% hard to borrow fee I'll gladly go in short and pay those fees knowing how quickly it will drop ....
For now though I own sell puts for tomorrow expiration and next Friday for some truly joyful UVIX experiences.
VIX > 30 should always be sold. Only the post-Lehman & Covid had sustained days above 30.
The 2008-2009 GFC VIX>30 for almost 9 months but that event almost took down the global financial system so it can only be considered an anomaly.
The 2020 Covid shutdown had the VIX>30 for 21 straight weeks.
I was surprised to look back & find that in the Feb 2018 volatility spike (aka Volmageddon) VIX>30 for 1 week. Even the 2018 Q4 meltdown VIX>30 for just 2 weeks. I think that was the last Powell tried to raise interest rates but reversed it in January.
The 2008-2009 GFC VIX>30 for almost 9 months but that event almost took down the global financial system so it can only be considered an anomaly.
The 2020 Covid shutdown had the VIX>30 for 21 straight weeks.
I was surprised to look back & find that in the Feb 2018 volatility spike (aka Volmageddon) VIX>30 for 1 week. Even the 2018 Q4 meltdown VIX>30 for just 2 weeks. I think that was the last Powell tried to raise interest rates but reversed it in January.
Trust me they aren't naked options. My collateral is already aside if I take the assignment not only that, but yesterday I rolled out and down, I was actually shocked when they took my order considering how wide the spread was.... It's not a crazy heavy trade...
Received another round of credit so that brought my average down.
Sell put is at 8 and bought another sell put at 7 expiring next week . The one at 8 is after nvda earnings which I know will create a substantial move in the markets.
Plus on the other side of the equation I'm still short a small amount of VXX and VIXY which I'm not going to sell at all considering if volatility just keeps slowly dropping these will just keep printing me money on the short side.
Also starting Monday I will be selling calls against UVIX and yes those will be naked in a totally separate account.