ProShares Trust Ultra VIX Short Term Futures ETFArca
描述
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While UVXY can in the short term jump (and jump quite a bit) long term there is absolutely no way for this to go but down. Currently have the following Positions
JAN 17 2020 10 PUT #20: Bought at .18-.28 - I will admit I don't love this position right now but still believe it will be profitable MAR 20 2020 10 PUT #10: Bought at $.50 JUN 19 2020 5 PUT #40: Bought at .15-.18 JUN 19 2020 10 PUT #20: Bought at $1.49. While biggest loser on paper so far it is by far the one I feel most confident.
You can not short UVXY (well most of the time) but you can make a mint buy longer term PUTS
Thanks...You must share the details all the time... congratulations!
TritonJGM1
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You are good...
FUNSB
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Thank you for sharing the details. What are other causes you believe UVXY would go down in the long term besides you saw one resistance level at about $36?
grubby1220
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@FUNSB, hey FUNSB and I apologize I just saw your question. It is just the very nature of the instrument. I don't know if you saw this (and honeslty have been slammed so dont know he exact number but I will go with lower figure) since trading started in October 11 the ETP is down 99.9%. The PV of UVXY when it started trading was roughly $32,580,000. I owe another person some info on this and if you like I will send to you as well. For playing the put, I really try and stick to
Expiration dates 10-24 months
No less than $10
The reason no less than $10 is the stock will reverse split with no notice and has done so anywhere from $8-$17. While the options are still liquid their value is not the same as options on par with options after the reverse split
Could you explain what kinds of targets you have for these options. In other words, when will you sell?
grubby1220
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@Algyros, you may have asked me this question a while ago and I truly apologize for not answering if you did but was out of pocket for a while.
In terms of when to sell there are three major issues, two of which are pretty obvious.
1. Time to expiration. As the time gets closer to expiration say within 30 days and I have a profit of 20% or more I will close out the position. The reason is because of what happened Friday when UVXY appreciated 15+%. You could have your whole profit wiped out if you get greedy. However, if I have a 30% profit on my JUN Puts and it is January I will hold on for a while longer as I know that even if there is a major jump I will most likely regain my profit. As a rule I have always sold when I make 100% on an option with the exception of 10% which I may hold to see if I can make more (if that doesn't make sense I will try and explain more)
2. Time to expiration. Obviously if I have a 10% profit and it is a week before expiration I will take it.
3. One of the biggest issues is when do I think UVXY will reverse split again. It has done so 9x I believe and will do so again (right now 2019 may be the only calendar year not to have a reverse split). The reason is that although the options are still liquid the market for them is horrible and most brokerages will tell you UVXY is not an "exercisable" option so you have to close the option to realize your profit. Once the stop reverse splits your options do the same and you will find that you will end up getting a 20-30% discount from what you would have received before the split.
I hope this make sense and I'm actually having to run so if this is poorly written and hard to understand please just tell me and I will address later this evening or tomorrow. Thanks