At Friday's close, ^VIX was down 11.26% while ^VXST was down 22.28%.
From a SA article "it is worth noting that the VIX has been higher than VXST about 61% of the time. Typically, when volatility spikes, VXST spikes much higher than the VIX, with the bulk of the 39% of the instances in which VXST is higher than VIX occurring mostly during periods of elevated volatility."
Would the trade be to short ^VXST / long ^VIX to gain that 11% edge?
Yesterday's AH high was 75.68
Today's high so far is 75.45
We need someone brave enough to buy at 75.69 to get the next upward leg moving.
Shorting shares would be a high risk play. Have you thought of maybe doing bear put spreads instead. If you pick the right strikes, you could do a ATM bear spread without paying for any time premium. The best part is that you would not have to worry about getting a margin call. With the huge short % of float, there is always the possibility of a short squeeze.
Does anyone here have multiple regular accounts with the same broker?
This would appear to be advantageous if you wanted to maintain a permanent short position in shares of UVXY or VXX in the first account. The second account would be used for trading shares of UVXY or VXX only from the long side for hedging or taking profits from your short position in the first account. This would also make it easier to transfer funds between the two accounts in case there is a margin call.
Most of the volume appears to be new positions rather than sell-to-close orders. I wonder if this was part of a dividend play since BX goes ex-dividend tomorrow.
It is hard to trade SVXY and UVXY options due to the wide bid/ask spreads. For now, I have been trading VXX options.
However, I am thinking of doing a longer term trade with SVXY by buying some June 40/60 call spreads for a debit of 10.50 or less. I like this spread because I will not be paying for any time premium. Another good thing is that the drawdown will be less compared to just owning shares or ITM open calls. For example, if SVXY were to drop by 10, this spread would still be worth around 7.
There has been no previous open interest for the Jan 2016, 185-200 calls.
Today, there was a new volume of 61 for the Jan 2016, 200 calls. Were these the calls you had sold short? It would be nice to have collected $3500 for each call sold.
Just remember that the IV increases rapidly as UVXY rises. I was selling calls with strikes in the 30s and 40s when UVXY was around 20 last year. I was doing ratio spreads with a single long lower strike call and 3 short calls having different higher strikes.
Have you found it is better to short calls rather than buying puts for VXX? It would seem advantageous to do so since the IV drops when the share price of VXX drops. Option premium erosion would work in your favor shorting calls rather than against you when long the puts.
Have you found a good way to short UVXY? Shorting UVXY would be more effective than shorting VXX, since it appears to be more biased to the downside. With UVXY around 100, the March 100 call is going for around 25. Huge premiums.
CSCO is paying 3.10% dividend
AAPL is paying 2.20% dividend
Without any new innovative products in the foreseeable future, AAPL will fall into the value stock category.
At this point, it would be better to increase the dividend rather than buying back shares.
Looks like AAPL is getting an early start for the Friday decline. Are you still going to play this for more downside on Friday?
Cook is probably okay as a person who can run the day to day operations of a company. But nothing more.
He needs to step aside and let someone else with more creativity and innovation lead the company.
With so many good people working at Apple, you would think they could collectively do a better job.
Unless there is some changes made very soon, Apple is going to become the next Cisco.
Larry Page, Sergey Brin, and Mark Zuckerberg were presenters at the ceremony. They were also the sponsors of the $21 million bestowed on innovators to the fields of fundamental physics and life sciences.
Now where was Tim Cook?
The best plan of action is to buy the dips prior to earnings and then to sell on the rally just before earnings. I had sold most of my position near today's close. My mistake was to keep some positions due to all of the hype on CNBC. But what I had kept was just some call spreads so it was not a major loss. I guess it was not too bad considering Icahn lost over 300 million today on AAPL.
offering a second, larger cell phone. There are millions of buyers out there just waiting for a larger iPhone. No innovation required. By just copying Samsung, this big AH drop would not have occurred.
Apple's best product is their mini iPad, something they felt forced to offer in their product line.
There is no reason why Apple does not offer two different sized cell phones. Samsung has 3 different sized phones.