Don't complicate the trades on UVXY... it is a very volatile issue..
I am positive we see 69 on Monday ...
If UVXY tests 69, then I'm good. Unless you that's a typo. If UVXY sinks I'll probably just close it out or sell a Call.
Always do a SPREAD on UVXY ALWAYS... I suggest u buy the 45 Puts as protection
on Monday... u will make less money but losses wont be ridiculous either... most probably
u may be able to close out ur short on Monday a.m. with a decent profit ... my model shows
UVXY testing 69 Monday....
Options in the money by 1 cent are AUTOMATICALLY excercised... AUTOMATICALLY
NO EXCEPTIONS unless... options owner calls broker by 4:15 NYC time to NOT
EXCERICE.... it WILL be assigned... just delayed posting...
Yeah thats what I figure, the two brokers should be playing by the same rules so to have two opposite outcomes doesn't make sense. One broker was 20 and the other 5 contracts (61.5). What gets me more is when I look at the stock charts from various sources the 1 minute and 3:00 price shows 62.9 through 62.97 from different sources, which would be OTM on the 63s yet the posted closing price is 63.05 . The 20 contract exercise also got me a Margin Call BTW, so I don't really have any choice but to sell ASAP. I've got questions out to both but won't hear back of course 'til Monday.
Money came from a “reverse repo fund” filled with cash accumulated at the end of QE3, play uvxy wisely\
Short biotech if market falls, it's time to flush biotech sec to redistribute fund and to save natural resources\
masmale1, Thank you for your valuable reply. I am learning about cantango & backwardation as it pertains to the VIX futures. How do you find where the futures are trading? I am holding XIV presently that is why I asked for your recommendation. Thanks for your help.
Bmohorek, I'm thinking that they made a mistake if that is even possible? Either way though, you should have been assigned by one. You should have been assigned with the 61.5 Calls since the stock closed above that strike price.
Now did you have same number of contracts?
There is a shmitah once every 7 years, and every 7 shmitahs there is a jubilee year. This one is the seventh, so it is more significant than normal.
As far as the world not going to #$%$ after the last shmita. The last shmita ended in 2008, on the day the market crashed. So, yes, the world did go to #$%$.
It's pretty simple...if the spot VIX is trading above futures, that is backwardation (such as we are experiencing right now). If the spot VIX is trading below futures, that's contango.
I'm not going to recommend anything on XIV as many will state I'm partial due to holding it currently. From a product basis, unless this high volatility continues...UVXY will begin to deteriorate as it typically does.
masmale1, Where do find the info regarding the contango or backwardation of the VIX futures? Do you think XIV is a buy, sell or hold presently? Thanks
Why hasn't the world gone to #$%$ after the last few Schmida or whatever the heck they are called. Why is this time going to be so different?