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David Moadel replied to the topic XIV Termination Event in the forum UVXY, TVIX, VXX, XIV, SVXY, VIXY, VMAX, VMIN 6 years, 9 months ago
Short vol and short SPX is an interesting way to hedge. Not a bad idea at all, if you’re willing to monitor it and rebalance as needed.
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David Moadel replied to the topic XIV Termination Event in the forum UVXY, TVIX, VXX, XIV, SVXY, VIXY, VMAX, VMIN 6 years, 9 months ago
What a wild day… I’m just chilling with cash, waiting for a modicum of stability in the markets.
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David Moadel replied to the topic Flush in the forum Daily Market Action: DOW, NASD, SPX 6 years, 9 months ago
We’ve seen some wild daily price swings lately. Indeed, this is not the stability I’m looking for. I’m all in cash, waiting for calmer seas…
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David Moadel replied to the topic XIV Termination Event in the forum UVXY, TVIX, VXX, XIV, SVXY, VIXY, VMAX, VMIN 6 years, 9 months ago
The VIX is up today while UVXY and VXX are down. Just goes to show how going long UVXY/VXX can be a wrong bet even when markets go down.
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David Moadel replied to the topic XIV Termination Event in the forum UVXY, TVIX, VXX, XIV, SVXY, VIXY, VMAX, VMIN 6 years, 9 months ago
I agree with GermanTrader’s thoughts. SVXY holders will probably want to reassess their long-term objectives and decide if they wish to stay the course.
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David Moadel replied to the topic XIV Termination Event in the forum UVXY, TVIX, VXX, XIV, SVXY, VIXY, VMAX, VMIN 6 years, 9 months ago
Great post and great summary, Scott.
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David Moadel replied to the topic Today's premarket in UVXY & VXX in the forum UVXY, TVIX, VXX, XIV, SVXY, VIXY, VMAX, VMIN 6 years, 9 months ago
The disconnect between VXX and UVXY today was quite odd. I know they’re different products from different companies and all, but still…
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David Moadel replied to the topic Buying SVXY calls today in the forum UVXY, TVIX, VXX, XIV, SVXY, VIXY, VMAX, VMIN 6 years, 9 months ago
I agree with Seth. Waiting a few days would be worth it, in my opionion
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David Moadel replied to the topic Can UVXY go to zero ?! in the forum UVXY, TVIX, VXX, XIV, SVXY, VIXY, VMAX, VMIN 6 years, 9 months ago
ES futures are bright green, but that doesn’t necessarily mean that UVXY would literally go to zero this week. UVXY does gradually trend toward zero, but they periodically revive it through reverse splits.
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David Moadel replied to the topic Volatility & Liquidity Confidence in the forum UVXY, TVIX, VXX, XIV, SVXY, VIXY, VMAX, VMIN 6 years, 9 months ago
It’s interesting, how we were just discussing “event acceleration” not long ago, and here we are, actually facing it. I never imagined that it would happen so early into 2018. History in the making…
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David Moadel replied to the topic Short VXX and UVXY with protection against Black Swan in the forum UVXY, TVIX, VXX, XIV, SVXY, VIXY, VMAX, VMIN 6 years, 9 months ago
Whichever strategy had the least amount of capital at risk is likely the one that proved to be the least pain-inducing today.
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David Moadel replied to the topic I'm Out in the forum UVXY, TVIX, VXX, XIV, SVXY, VIXY, VMAX, VMIN 6 years, 9 months ago
Well played, Scott. I wish that everybody else could have profited from this event, but unfortunately there are some folks in “difficult” situations right about now…
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David Moadel replied to the topic Did we just see a Flash Crash intra-day? in the forum UVXY, TVIX, VXX, XIV, SVXY, VIXY, VMAX, VMIN 6 years, 9 months ago
I don’t blame you for staying out of the vol product game for now… That’s how I’m handling this situation
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David Moadel replied to the topic Volatility ETF/ETNs Liquidations Possible Today AH in the forum UVXY, TVIX, VXX, XIV, SVXY, VIXY, VMAX, VMIN 6 years, 9 months ago
More information should be available if/when the dust settles tomorrow… The folks at ProShares and VelocityShares must be inundated with “concerned” investors right about now…. Hopefully we should get some clarity in the morning.
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David Moadel replied to the topic I'm Out in the forum UVXY, TVIX, VXX, XIV, SVXY, VIXY, VMAX, VMIN 6 years, 9 months ago
Scott, that’s probably the best possible response. People mostly just want reassurance that things will be okay. I’ve received a number of e-mails like that this week, especially from pot stock and cryptocurrency investors…
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David Moadel replied to the topic No more naked selling of UVXY calls for me… in the forum UVXY, TVIX, VXX, XIV, SVXY, VIXY, VMAX, VMIN 6 years, 9 months ago
The long 50/30 delta put spread strategy looks interesting. The 615% 5-year return is quite impressive, though also keep in mind that the average percent return per losing trade was -72.4%, which many traders won’t be able to stomach. Also keep in mind that we’ve been in a massive bull market for the past 8 years, which could skew any…[Read more]
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David Moadel replied to the topic No more naked selling of UVXY calls for me… in the forum UVXY, TVIX, VXX, XIV, SVXY, VIXY, VMAX, VMIN 6 years, 9 months ago
Thank you Steve, I hope that this has provided some ideas for everyone involved.
As Seth has been saying, having plenty of available cash (or at least assets that can quickly and easily be converted into cash with minimal loss) is essential, along with giving the trade plenty of time to work itself out in your favor.
Kevin, it is true that the…[Read more]
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David Moadel replied to the topic No more naked selling of UVXY calls for me… in the forum UVXY, TVIX, VXX, XIV, SVXY, VIXY, VMAX, VMIN 6 years, 9 months ago
These are all excellent points! I’ve had to discipline myself to give my trades more duration so that the trade has a chance to work itself out if it goes against me at first. I have to think in terms of weeks and months, not days! I haven’t considered going out a full year when buying puts on VXX or UVXY. Perhaps I should look into it, though…[Read more]
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David Moadel replied to the topic No more naked selling of UVXY calls for me… in the forum UVXY, TVIX, VXX, XIV, SVXY, VIXY, VMAX, VMIN 6 years, 9 months ago
That’s an interesting approach, trying different expiration dates. I’ll be curious to see how that plays out
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David Moadel started the topic No more naked selling of UVXY calls for me… in the forum UVXY, TVIX, VXX, XIV, SVXY, VIXY, VMAX, VMIN 6 years, 9 months ago
I’ve decided not to do naked (uncovered) selling of UVXY calls anymore. Luckily for me, I’ve been all in cash since Thursday. Friday showed me just how fast UVXY can move. Even if I do it “safely” — layer into the position, sell UVXY calls 45 or 60 days out, far out of the money, and with just 20% of my available margin and the remainder of my…[Read more]
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