Alternative Investment: SIMPLIFY VOLATILITY PREMIUM ETF
Fundamentals:
SIMPLIFY VOLATILITY PREMIUM ETF (SVOL) tries to minimize volatility with maximizing dividend income. It is an alternative investment that does not correlate with market drops, but attempts to capture profits from volatility in the VIX.
SVOL does not hold stocks and does not use a covered called strategy to generate its dividend yield. This fund makes a profit by betting against the VIX by shorting S&P500 VIX volatility short-term futures while hedging tail events using UVXY calls. It buys call options if volatility suddenly spikes to counter the losing short positions. It sells options and distributes a portion of its profits to investors in the form of a dividend. The value of the VIX contracts in contango (upward slope) will drop over time, generally (similar to time decay or theta decay), but the contango must be present in order to generate its returns; that is, with contango, the long-term contracts must be more expensive than the shorter-term contracts with sufficient spread. This fund minimizes its risk with buying calls on the VIX using UVXY calls with small 25% of asset positions max (less than 1/4 of assets), not 100% of its assets to short like XIV (which dead because of a volmageddom even back in 2018). When things are normal (fear is low) SVOL does well.
Technicals:
Weekly:
Price is on cloud support in stage 3 ichomiku trend
MACD and MACD-ichimoku above zero
Daily:
daily hammer with d3 volume between 38%-50% fib support
Comment: If price breaches the high of the hammer tomorrow, I probably will hop in.
SIMPLIFY VOLATILITY PREMIUM ETF (SVOL) tries to minimize volatility with maximizing dividend income. It is an alternative investment that does not correlate with market drops, but attempts to capture profits from volatility in the VIX.
SVOL does not hold stocks and does not use a covered called strategy to generate its dividend yield. This fund makes a profit by betting against the VIX by shorting S&P500 VIX volatility short-term futures while hedging tail events using UVXY calls. It buys call options if volatility suddenly spikes to counter the losing short positions. It sells options and distributes a portion of its profits to investors in the form of a dividend. The value of the VIX contracts in contango (upward slope) will drop over time, generally (similar to time decay or theta decay), but the contango must be present in order to generate its returns; that is, with contango, the long-term contracts must be more expensive than the shorter-term contracts with sufficient spread. This fund minimizes its risk with buying calls on the VIX using UVXY calls with small 25% of asset positions max (less than 1/4 of assets), not 100% of its assets to short like XIV (which dead because of a volmageddom even back in 2018). When things are normal (fear is low) SVOL does well.
Technicals:
Weekly:
Price is on cloud support in stage 3 ichomiku trend
MACD and MACD-ichimoku above zero
Daily:
daily hammer with d3 volume between 38%-50% fib support
Comment: If price breaches the high of the hammer tomorrow, I probably will hop in.
Capturing the swings of the stock market & currency market. It's a dirty job and equity/currency traders must do it.