Hey Guys, Im new to your board and considering an option position in UVXY
I normally try the SDS and SPY with weekly calendar call or put spreads. This market seems very overbought IMO. Does this UVXY typically trade inverse to the SPY? I know what the ETF is Im just not very familiar with its trading patterns yet. Is it me or does this $ 6.50 entry range seem very attractive short term? With the SPY up 4 points alone this week, a small retracement over the next week or two could take this to possibly $ 8 IMO.
Be careful this can be very dangerous if you don't know how to press the sell button. You can't hold long on this because it gets eaten away by fees. You have to get in at the right times and be careful about holding overnights. Only buy this if you think pull backs or very bad news is very close. If you get it wrong you just have to sell and cut your losses to get back in cheaper. Pride in UVXY will cost you a lot of money.
Thanks Snype8. I agree 100% I think the market is severly overbought and im looking to trade this this for weekly pull backs. Still undecided between VXX adn UVXY. VXX is very liquid on the option market and trades weeklys which I like.
The fees are monthly correct? not weekly or do we not know?