Listen to Wes? Last I heard, Wes is long VXX. So what are you referring to?
I am currently short UVXY, and had a short position in UVXY thru a good part of January. I just made the mistake of taking profit too early, and not holding on to a core short position, no matter what.
My current position is very small, because I do expect a significant pullback in the market and will add to my core short position when that happens. If I am wrong, and the market just continues its straight up gravity defying move to record high after record high daily, then I will simply hold on to this core short UVXY position while reverse splits will increase my holdings over time.
"If I am wrong, and the market just continues its straight up gravity defying move to record high after record high daily, then I will simply hold on to this core short UVXY position while reverse splits will increase my holdings over time."
Your strategy is in the right place but your math is a bit turned around.
Reverse splits will decrease the number of shares that you eventually must buy back.
ie, if you are short 3600 shares today, in two years, after two more 1:6 reverse splits, you will be short only 100 shares!!!
Yes do as I say not as I do. I am a fickle and nimble trader I will admit but in hindsight the short VXX bet ALWAYS pays off with NO TRADING required. It is a stress free bet I have no problems recommending. I have people in short VXX now as I am long because they simply do not have the ability to make the decisions that I am able to do. I do not feel guilty about that as I am losing hehe. Right now anyway. Over time they will for sure outperform me with that bet - UNTIL I join them again. I have a long VXX bet to protect some of my longer positions. I find it is actually cheaper than buying puts on the stocks I own personally!