I wouldn't cover my short today. But, hey! Why not ride it to $1200 and let the brokerage cover for you?
I remember NFLX. It closed at $95 and jumped to $122 AH. You have no idea how many had the same question, "who the bleep is buying after a 30% jump"?
Next day it closed at $144 with a high around $149. Three weeks later was $185. We all know what happened after. And I can give you tons of examples. FB, GMCR, PCLN, TSLA, LNKD.
You girls asked the same questions when the stock jumped from $300 to $375 or from $412 to $486 or from $579 to $646 or from 798 to $842. And now from $888 to $962. Next earnings will you ask "who exactly are the idiots that buy at $1250 after it spiked from $1100”?
With all the negativity on cnbc I bought 4c $900 expiration tomorrow at $11 each. If it opens around $950 I should be able to sell them for at least $50 each. Better if there are upgrades in the morning.
I never do that. UVXY has a mind of its own. Anyway, with the fed pumping money into the market, no catalysts until February, I see UVXY around $15 by Christmas and $10 by January. Earnings don't even matter for this 'stock'
If they cut a deal, VIX will drop 30% in a matter of days. That should knock UVXY down anywhere between 40-60%. Look at what happened after the fiscal cliff battle. First day UVXY was down 36% then 40% more in about four weeks.
The fed won't taper this year. I bet my life on it. Then there is no data until March to make them rethink their strategy.
I say, there won't be taper until March. Feel free to bump this thread if they do it earlier.
Six months $85B per month is a lot of money that will only push the market higher.
Don't fool yourself. Earnings don't matter as long as the fed pumps billions monthly. Feel free to fight the fed. Besides, a down market doesn't translate in a a high UVXY. UVXY has its own days, very few and far in between. It mostly goes down no matter what.