VXX a good buy at current levels?

Quote from trefoil:

Look over in the Options forum, there was a long thread on the VIX. Atticus, at a time when the term structure was just as steep, suggested shorting the options on the futures, and hedging with SPY puts.
I put this on at that time and it wound up making money on both sides of the trade. Started this up again last week, shorting Sept and to a lesser extent Oct, hedged with SPY/SPX put spreads. We'll see how it works out. Will close out/modify when VXV is back to within one std of its normal relationship with the VIX, or by Labor Day, whichever comes first.
So the idea is to short that term structure but hedge it to keep the risk from a blowout to something reasonable. But going short XIV just because the level of the VIX is low, without looking at the term structure of VIX, is just amateurish.
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I've been long upside deltas in flies and long the Sep/Oct futures switch. 10:1 favoring flies. It's done ok, up 10% or so on combined haircut.
 
Quote from cdcaveman:

love that.. me and my friends use that quote alot...

this one is hilarious to... "I'll use my credit card"

<div style="background-color:#000000;width:368px;"><div style="padding:4px;"><embed src="http://media.mtvnservices.com/mgid:cms:item:southparkstudios.com:103431" width="360" height="293" type="application/x-shockwave-flash" allowFullScreen="true" allowScriptAccess="always" base="." flashVars=""></embed><p style="text-align:left;background-color:#FFFFFF;padding:4px;margin-top:4px;margin-bottom:0px;font-family:Arial, Helvetica, sans-serif;font-size:12px;"><b><a href="http://www.southpark.nl/guide/episodes/205/">South Park: Conjoined Fetus Lady</a></b></p></div></div>
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Nice. A better line in that episode from the Chinese announcers is:
"Oh my, I haven't seen an American die like that since Abraham Lincoln!..."
"Dude that is-a not cool, you-a gonna get us in troubre again..."
 
Quote from atticus:

I've been long upside deltas in flies and long the Sep/Oct futures switch. 10:1 favoring flies. It's done ok, up 10% or so on combined haircut.
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Funded an IB account for my son with the specific purpose of getting at those VIX futures (I'm at TOS, which only has the options). Not a big deal if he blows up; all he has to do is last 'til January so's I can gift him w/another 10k tax free to replenish it.
Of course, if it turns out he actually knows what he's doing, well, cool. Stranger things have happened...
 
Quote from trefoil:

Funded an IB account for my son with the specific purpose of getting at those VIX futures (I'm at TOS, which only has the options). Not a big deal if he blows up; all he has to do is last 'til January so's I can gift him w/another 10k tax free to replenish it.
Of course, if it turns out he actually knows what he's doing, well, cool. Stranger things have happened...
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Wow. How old is he


My dad luckily never bought me a thing... no cars, businesses, go angel investments... oh yeah he did pay for 14 months of rehab!
 
Quote from cdcaveman:

Wow. How old is he


My dad luckily never bought me a thing... no cars, businesses, go angel investments... oh yeah he did pay for 14 months of rehab!
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...which was probably more expensive...

College is 50k a year, you know. 10k is cheap.
 
College is basically an expensive way to get laid... 50k for what kinda schooling... my parents did florida prepaid... yet im. Still a savage unedujamatced fool! Haha..
 
Quote from trefoil:

Funded an IB account for my son with the specific purpose of getting at those VIX futures (I'm at TOS, which only has the options). Not a big deal if he blows up; all he has to do is last 'til January so's I can gift him w/another 10k tax free to replenish it.
Of course, if it turns out he actually knows what he's doing, well, cool. Stranger things have happened...
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i wish him/you luck in the futures..just fyi i've seen many guys who seemed to know how to trade get destroyed here...its far from intuitive..but if he's the rare guy who can make it...kudos.
 
Quote from sellindexvol66:

i wish him/you luck in the futures..just fyi i've seen many guys who seemed to know how to trade get destroyed here...its far from intuitive..but if he's the rare guy who can make it...kudos.
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I've been sharing my little bit of knowledge, and he attended a CBOE seminar and has been reading up a lot on all this. Of course he'll paper trade first, especially since the IB interface ain't TOS by a long shot. So, he'll be approaching it sanely. Not that that doesn't mean he won't blow up, of course.
 
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