Originally Posted by slamako
Thanks for the tip. New to Vol trading. I'm planning to jump out by month's end. I want to have fear and uncertainty brew over the weekend.
Would you say the same applies for any leveraged (double/triple) underlying?
Since you mentioned this, I will watch this trade tighter. Thanks.
I'm on the right side of the trade (thus far) but will watch the decay.
TVIX.IV will tell you how much the product should be worth. Tbh, choose UVXY over TVIX if you are going to be doing a 2x VIX long. Just remember that the collapse of volatility is fast and going at 2x the speed is dangerous when you're on the wrong side. Case in point, UVXY dropping 10% in 30 mins today.
Also, I averaged my XIV position today into the black. Sold earlier in the day and then bought back into XIV at $20.89, right before that epic vol collapse today. VIX was definitely over priced on the ST and this will cause a bounce back rally that might go to 1520 or even 1530 before a large (possible) correction takes place. 1500 held well today. As of this writing, SPX was up around +6 on ES.
Originally Posted by PSUSMU
Scared money don't make money.
+1. Money must be an army that we send out daily. And what we want is for them to take back prisoners so we can send them out to get more prisoners.