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speeter: the way you write that someone might think you have a gain of $142.00. You don't. The key is when you say "split-adjusted." If you happened to have shorted UVXY when it first was introduced, at around $45.00, then your gain is about $44.00. It is hard to believe you would hold your short position to this day. If you didn't add to your position any, but you probably did (which was the right thing to do), your gains since the reverse split have come at 1/6 the rate. Since the split in March, you have gained maybe $5.00, at best. Why would you continue to hold it for such slow and painful gains? You should actually WANT it to go back up so you can re-short it with an entirely new position. Saying you will continue to hold it for such painfully slow gain is ridiculous. For each $1.00 a long loses since March, you gain a little over $0.15. Don't see the logic, sorry.
Good luck and good trade, so far. However, it is not a great trade until you actually cover.
Tax reasons my friend. This is WHY I won't cover. I've watched this go from $147/share to $5/share split adjusted. Obviously, most people think...I'M a retard for not covering. Well, I'm in the highest tax bracket in America. Sorry, but Uncle Sam is not getting 40% of my profit. Hence the reason why I won't/can't cover until November.
Understand completely, I guess. It is like a friend of mine who says he would never buy a lottery ticket when the jackpot is over $200,000,000.00. He says the taxes would kill him of he won. Kind of a hollow victory, though. By the way, I believe if you hold a short position past December 30, the amount of short shares that have been "loaned" to you count as capital gains. One reason for the Santa Claus rally. Did your accountant catch that when you held this from November into the new calendar(aka, tax) year?
You want your cake but you don't want to eat it.
watty, the gentleman speedster has been posting on this board about UVXY at least from the beginning of this year. hes been telling people about uvxy, and how hes been shorting it. the guy has been consistant for a long long time.
PS: Another reverse split would just hurt you 6 times as much again. Even if you were to "Load Up" right before the RS, if it is at $4.00 when it splits, your maximum additional gain is still $4.00. Do you always short penny stocks, too?
speeter: Actually, as I re-read your post you do come right out and say "$147 to $5.00." That leads me to believe that maybe you haven't actually been holding short since November. If you had been, you would not have expressed it that way. Unless of course you had said you did that with 1/6 the position you originally had. So, it is either $147 to $5.00 with a now 1/6 position or it is $45 to under $1.00 with your full position. Still a great trade, but not even close to the gain a TVIX LONG holder had not once, but twice, and not split adjusted or anything. Please, get the numbers right or fess up as to when you actually opened your position.
If you hold through another reverse split are you going to expect people to believe you held it from $600+ to under $5.00? The fact is you would still be just a little over a $44.00 gain at that point.
Holding at this point gets you nothing more. How can you stand gains like that? Make a winner a winner and take your gains off the table.
That's true Watz, if he's been in since Nov-11, his gains really are from $140s level. You still trying to pop those balloons nephew? When are you going to join me on a fishing trip and shoot fish in a barrel? Lots more fun and looks like we're going to get another entry after a short run up in this bad-boy.
That would not be correct, jus.
Nov 2011: short 1,000 at $44.00.
March 2012: unrealized gain of $38,000.
Reverse split at $6.xx. Unrealized gain of $38,000.
After RS: unrealized gain $38,000. Shares held short now are 166 (1000/6).
Since RS: additional realized gain is $5,146.
Total unrealized gain: $43,146.00.
That is a big difference compared to $147 to $5 which would have an unrealized gain of $142,000.
Of course, all those numbers are "unrealized" gains as I've noted because he has not closed it, yet.
But do you see how the math actually works for a reverse split, now? I stand by my comment that he may not have held it that long. Or if he has, he hasn't looked at his account since before the RS, otherwise he would have noticed the reduced number of shares and greatly reduced gains. Remember, since the RS, he has actually only gained a little over $5.00, not $31.00 as he would lead one to believe.
Good luck, jus. I'm just setting the record straight for speet.