Here's where I am. I sold cash secured $9 strike March several times and sold these again Friday. These are eroding nicely as the common trends upward. These are losing time value of money more rapidly as these are out of the money and getting further out of the money on the rise in the common.
This is now 4% of my current account value.
The elegant part of trading strategies for UVXY is that the only sure thing is that it erodes over time based on the management fees and the cost of rolling the volatility contracts forward. UVXY has some elegant rises and then returns to a long term erosion of the capital base. Hence the continued reverse splits and eroding stock price. Sooner or late ProShares reverse splits the common and the decline based on fees and the rolls marches forward.
The opportunity with it near these pre-split adjusted lows is to see puts out of the money and hope for a fractal rise, a Bollinger band movement to the downside for cash secured put selling.
I currently will have to have the cash secured puts below $7 fot the common in less than 50 days to have put to me stock that is a losing proposition. but even that would not be a loser as I would sell a one month 30 delta call. 30 deltas almost always expire worthless.
This name can be profitably gamed because of the long term erosion and the short term fractal etc bumps.
This is now 4% of my current account value.
The elegant part of trading strategies for UVXY is that the only sure thing is that it erodes over time based on the management fees and the cost of rolling the volatility contracts forward. UVXY has some elegant rises and then returns to a long term erosion of the capital base. Hence the continued reverse splits and eroding stock price. Sooner or late ProShares reverse splits the common and the decline based on fees and the rolls marches forward.
The opportunity with it near these pre-split adjusted lows is to see puts out of the money and hope for a fractal rise, a Bollinger band movement to the downside for cash secured put selling.
I currently will have to have the cash secured puts below $7 fot the common in less than 50 days to have put to me stock that is a losing proposition. but even that would not be a loser as I would sell a one month 30 delta call. 30 deltas almost always expire worthless.
This name can be profitably gamed because of the long term erosion and the short term fractal etc bumps.
all the best.