When buying put spreads, I prefer to go out 3 to 6 months in duration. When selling options, 45 days is considered to be a good time frame in order to maximize theta decay.

I feel that UVXY/VXX LEAP puts can be worth buying, but I would choose to buy in-the-money and then make it a vertical debit spread by selling an out-of-the-money put with the same expiration date. This will reduce the cost basis and can cushion the blow if the trade goes against you for a while.

I agree with your assessment, Richard

GPRO is down 26% this morning. Overreation perhaps, but I won’t be catching this falling knife right now at least…

I agree, Scott, with the strategy of buying VXX or UVXY put spreads with 90 to 180 days until expiration. Closer to 180 days is for the more conservative investors, while closer to 90 days would be for the more risk-tolerant investors.

Andrew, I also like to sell UVXY call spreads, though I prefer to choose strike prices that are out of the…[Read more]

Thank you Scott, I will check that out

Definitely some worthwhile information on the CBOE website and blog — and if the CBOE website itself is (indirectly) cautioning folks about taking long UVXY positions, that should tell us something….

This video was an eye-opener for me. Previously, I hadn’t seriously considered the bond market and yield curve before when trading UVXY/TVIX/VXX.