usctrojancpa
Well-known member
See, market up a little with slight dip in VIX those options are back down to $0.40. Trading these VIX/VXX naked options are not for the faint of heart or wallet. hahaaquabliss said:
Dow?
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i did buy some SSO this morning in my account and inlaws account. when the dow was down about 130. i was expecting the rebound tomorrow or later this week, not today. oil was just as crazy. did load up on some more NBR in the 12.80s as well. Im holding off on more PBR though (thought looks like that was bad move to hold off).
Not necessarily .. in an up and down swinging market.. yes. But if the market moves consistently up or down in a slow manner.. you will lose because of the compounding (opposite of decay) if it moves in one direction. If you did this Jan 2-Dec 31, 2013, you lost about 20% spread:
SSO price: Jan 2 close 63.29, Dec 31 close 102.56 (+62%)
SDS price: Jan 2 close 51.40, Dec 31 close 29.66 (-42%)
Also if you are short/put, maximum gain is 100% (stock goes to 0), maximum loss is infinite. So in a strong bull or bear market, one ETF can double or triple in price while the other one would just get lower and lower but you won't gain more than 100% on that one if you are short/put.
The Motor Court Company
Well-known member
loaded some NBR at $13 and FCX @ $17.6
In Qwerty I trust
In Qwerty I trust
usctrojancpa
Well-known member
Besides not being for the paint of wallet, trading naked VIX/VXX calls is not for the faint of heart either. Expect to take 5 figure hits here and there, but just make sure you've collected enough premium to be able to absorb those loses.aquabliss said:USCTrojanCPA said:
Ya, in terms of % changes these are a wild ride for sure. I'll leave these to you RE moguls
The Motor Court Company
Well-known member
FCX 7% drop today...while Grexit grabs most headlines, I think China is a bigger risk...
probably will load up some SSO at the end of today, and see if there's a dead cat bounce tomorrow
probably will load up some SSO at the end of today, and see if there's a dead cat bounce tomorrow
The California Court Company said:
usctrojancpa
Well-known member
Looks like oil is getting close to the $40 handle. If it gets into the mid $40s that might have a negative impact on the market.
The Motor Court Company
Well-known member
wild day at the market today; 300 points swing! was Qwerty busying trading and making his money? have not seen him posted much during the trading hours.
qwerty
Well-known member
The California Court Company said:
i did buy some SSO this morning in my account and inlaws account. when the dow was down about 130. i was expecting the rebound tomorrow or later this week, not today. oil was just as crazy. did load up on some more NBR in the 12.80s as well. Im holding off on more PBR though (thought looks like that was bad move to hold off).
The Motor Court Company
Well-known member
which is a better gamble? AMD (banking on it will be acquired or spin off graphic card business) or Chinese stock mutual fund index following the recent plunge?
I'm wondering if one could buy equal volume puts on both ultra bear and bull ETFs since over time there is a theoretical decay in the price.
For example, ytd on SSO is +2.46% and ytd SDS is -6.39% for a net of -3.93%
Another example: ytd on YINN is -7.47% and ytd YANG -23.46%
If you buy equal volumes of puts, wouldn't you end up ahead over time?
For example, ytd on SSO is +2.46% and ytd SDS is -6.39% for a net of -3.93%
Another example: ytd on YINN is -7.47% and ytd YANG -23.46%
If you buy equal volumes of puts, wouldn't you end up ahead over time?
toady13 said:
Not necessarily .. in an up and down swinging market.. yes. But if the market moves consistently up or down in a slow manner.. you will lose because of the compounding (opposite of decay) if it moves in one direction. If you did this Jan 2-Dec 31, 2013, you lost about 20% spread:
SSO price: Jan 2 close 63.29, Dec 31 close 102.56 (+62%)
SDS price: Jan 2 close 51.40, Dec 31 close 29.66 (-42%)
Also if you are short/put, maximum gain is 100% (stock goes to 0), maximum loss is infinite. So in a strong bull or bear market, one ETF can double or triple in price while the other one would just get lower and lower but you won't gain more than 100% on that one if you are short/put.
