Oops it cut off part of my post because I used a less than sign. I try to keep the put contract I own at least 3 months out and honestly I like it better the further out it is, just in case there is a prolonged volatility spike, so there would be some time to recover it. I owned March $25 until January and I rolled to June $25. When $25's became in the money I didn't roll fast enough in March, and I had to roll later and paid big for it. After that I bought $14 Jan's and those quickly went into the money as well, I rolled every week until early June when there was a vol spike. my weekly expired and I rolled the Jan $14 down to the Jan $9, which is where I am now. I try to keep my strike price near where UVXY would trade if both of the contracts were around $16
The best short sales I ever had were the ones that made me nauseous. 1000 point down day last August comes to mind. Congrats
Thanks for the recognition. You know that is what I live for :-). Unfortunately the shares are so hard to borrow now. You must be sucking them all up.
TVIX shares seem harder and harder to borrow these days. I encourage you to look at put calendars and selling at or in the money naked calls on UVXY. The premium on these are ridiculous. Friday when UVXY was trading around $14 I sold next weeks $14 call for $2. They wont always be that pricey but even during low volatility times they seem to give you at least 6% of the strike price. Selling an at the money call 1 week out on UVXY is no more dangerous than shorting $1300 worth of TVIX, and my broker actually requires less margin to put on this trade, than shorting TVIX.
As far as put calendars are concerned I buy an out of the money Jan 2017 put and sell weeklys against it. One of the biggest risks I have found, is it becoming too in the money on the strike price. There isn't much premium week to week if you are over 20% in. I try to keep the strike price
Ha, I hadn't heard from you in a while, bull. Sorry. You aren't a die hard long, and actually take a gain here and there. I'm not even sure the rest of these guys are actually playing with real money.
I feel like I have seen this movie before. This has been the longest group of TVIX syndrome patients we have ever had. Berchik has been doubling down seemingly this whole year. Adventureguy is off of his meds again. Ndibari has totally lost it. Beachbum is well... Beachbum. Stange times.
Theoretically this is the index that TVIX matches but uses leverage. S&P500 SHORT TERM FUTURES INDEX (^SPVXSP).
Reserve your shares an hour prior to the open by using a limit order. There were still a half a million shares available this morning when I did it.
I'm getting to the point that I am going to start favoring selling at the money naked calls on UVXY. The premiums are ridiculous, and even when they are in the money at expiration you can just roll to the next week for another ridiculous premium. You can't time your taxable gains this way, however it is no more dangerous than shorting the product. As long as your % of your portfolio is low.
It isn't a theory, it is a fact. VIX futures contracts historically are in contango roughly 80% of the time. They were in backwardation for the first ~6 weeks of this year, then went into contango and didn't go back into backwardation until Friday. I have been short TVIX for more than 2 years (no position for maybe a month or so during that time period) because of this exact fact. The past 2 months have had the steepest contango I have ever observed.