@ultrafeel

I read Trading volatility by Brennan Nykreim and was sharing some of the ideas i got. I do agree 1 month out would not be a good idea.

I agree Seth.

I usually try to let folks decide their own participation path, but have to agree with @ultrafeel because SVXY will inherently need greater duration to execute meaningful profit, especially when compared to UVXY or VXX. This is before taking into consideration beta slippage from SVXY. Just my two cents.

Yes @ultrafeel but that distinction never denoted profit parameters going into backwardation either and is a bit of a nonsensical caveat as backwardation historically lasts for brief periods. Practically speaking what do they assume investors to do when term structure is in backwardation, clear the decks? Then we go into contango and try to put…[Read more]

@ronturkey @ultrafeel Yes I did lean on the side of the market cycle as I feel its prudent to do so. If we were earlier in the cycle I’d push the envelope, but we aren’t as we see in both chronological terms as well as inflationary terms. As it were in 2015 with me, I went into that spike with over 70% cash and was still found wanting due to the…[Read more]

@seth-golden Seth, I noticed you tended to dissuade this trade with that example of capital size “at this stage of the bull cycle.” So, how are you weighting this conclusion to @ultrafeel? Imo, the time management is the issue. It’s not worth all the time spent to manage a 10k account shorting vol (unless you did a set it and forget it core…[Read more]