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ProShares Short VIX Short-Term Futures Message Board

  • deeremanuk deeremanuk Mar 14, 2013 5:28 PM Flag

    Jan. 2015 Call Optios

    They look very attractive based on the history of the VIX & SVXY. I would only put about 5% of my money in them but a quadruple looks probable. Does anyone have an opinion because I'm about ready to buy?

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    • with huge contango of 10% monthly - paying about 20% to 30% on calls for 2015 seems like a no brainer .. but with VIX spot at 52 week lows, there is certainly some risk that VIX could spike and SVXY could drop ... Once it drops 50 to 80%, it may not fully recover for quite some time .. that's why if one is patient and can sit tight, svxy over the long haul should benefit from contango and keep making all time highs ...

      but options could carry a risk as they expire at some point in time!

      • 1 Reply to stockplaza555
      • Yo! Stockman (or do you prefer PlazaDude) & Deereereere:

        I hadn't even thought of looking at those calls but I will. I had purchased some deep ITM June50's 6 months ago. They are now up 80%. Better than buying the instrument itself.

        I need to run the numbers and I will.

        Selling puts has been very profitable. Believe it or not, the same risk is relatively the same in this case as owning the equity as long as you keep the risk of equity loss the same.

        After observing the huge decay following the recent huge volatility VIX round-trip, I began considering selling credit straddles but need to do my income taxes before I take that task on...

        Happy hunting!



    • very smart.

      Sentiment: Strong Buy

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