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SPDR S&P 500 ETF Trust Message Board

  • xtgeminiman Dec 19, 2012 10:23 AM Flag

    Why Buy TVIX/VXX/UVXY When You Can SHORT VIX Puts?

    Same effect except no contango and you gain theta (time premium)!

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    • you almost sound like you know what you are saying, however, you either sell puts and calls or you buy puts or calls. you sell stocks or you buy stocks. you can also short stocks, but who is allowed to sell naked puts except for the longs and market makers. am i having another stupid session or what? seriously, let me know. i should not chide something that may be something i don't get. short vix puts. first, does vix have puts? wow, you lost me. truly. i will have to think about that one.

      • 2 Replies to susiesweatsocks
      • xtgeminiman Mar 6, 2013 11:45 AM Flag

        Be careful. VIX options trade based on the VIX futures contract of that month and that month only so if VIX spikes 20%, only the nearest contract will benefit. I thought this was a good idea a month ago but it's not. If you're going to trade VIX, wait for a spike and short the bear ETFS (TVIX, UVXY, VXX) outright or via bear spreads.

      • What's the difference between selling and shorting?

        When you short you just sell something you don't have.
        A concept that Kibbles will never understand.

        On planet Earth NOBODY has EVER made money buying anything.
        You can ONLY make money by selling.
        Is this another novel concept?

        Of course, it doesn't always have to be that way.
        When you want to short EUROs or C$
        you can just buy US$ instead!

        Notice that C$ is down from $1.06 in 2011
        to 0.97 today?

        What would you do today?
        Buy gold/silver or US$?

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