I likely contributed to VXX moving lower today. By me covering my short UVXY shares, the typical move occurred, and thats lower. So the fools that are long and strong, loss even more money.
I simply did not short enough shares to excite me, so I will wait for a nice POP in this etn before shorting again. And when I do, I will short a more substantial number of shares, to make it more worth my while.
I did make a profit, and used that profit for setting up another bull put spread in my account, that is already making money, and adds significant theta to my portfolio. VXX/UVXY always make me money. So look forward to next oportunity to short!
I have been shorting UVXY shares. I am currently on the sideline, waiting for any reasonable POP so that I can short it again.
I went the put route often last year, and did well. Just seems to take a little longer when trading puts to secure profits, and with the VIX at all time lows, got to think that one of these days, a little fear will hit the market.
I know this is contrary to some of my recent posts about me holding a core short position in UVXY, I now am a little nervous about the market as it continues relentlessly higher with so few breathers.
I am almost certain that a major pull back will occur with the next wave of bad news that hits the market.
Perhaps the fed will say something concerning, or some new problem with the economy will emerge.
I am now spending time in the market with UVXY short positions, and times out. Hopefully, when the fear hits, I will just happen to be on the sideline like I was in Aug 2011.
The 1st wave of fear to hit the market will likely be the most concernig, with big spike in the VIX.
After that, subsequent spikes may occur, but will likely be short lived, and of less magnitude. And, that is when I will ease into a large short position, or purchase puts on the cheap.
Caper I have seen your posts here and am very impressed that you have more than doubled your money in a year. My question is- do you think with the VIX so amazingly low now, the easy money is over on this trade? Are you still buying put spreads even with VIX in 12s? Seems like we could easy get back to 20 in a flash on the VIX. I know you can only lose the premium you put up on the spreads.