All you need to know is how to sell tops.
from ES 1350 to 1420 in 3 weeks. What do you think???
from ES 1350 to 1420 in 3 weeks. What do you think???
Quote from trefoil:
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.
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.
Quote from ScalperJoe:
Some past threads regarding VXX:
http://www.elitetrader.com/vb/showthread.php?threadid=239213
http://www.elitetrader.com/vb/showthread.php?threadid=240342&perpage=6&pagenumber=1
Regarding the question of whether it "cannot go to 0", Barclays can announce a 1 for 4 reverse split anytime the VXX falls below 25:
http://www.ipathetn.com/static/pdf/ipath-split-FAQs.pdf
Quote from zdreg:
which thread in the options forum are you referring to?

Quote from Soon2Bgreat:
VXX currently up over 1400% - was definitely a good buy.
31.95(1479.17%)
http://finance.yahoo.com/q?s=vxx&ql=1