UVXY - its ProShares not NewbieShares
ProShares has reverse split UVXY 10 times since creation of this ETF.
It is most logical to buy puts immediately after the common is reverse split.
Fact: There are only been 4 in the last 281 months where SPY has been down 10% for the entire month.
Prior to the reverse split last month there were 8 reverse splits that resulted in $5000 becoming $4. This makes UVXy easy to game to the downside.
If an investor has a large account a few share sold short will continually b profitable until the small upside run. what characteerizes a small upside run?
The Covid Crisis in 2020 saw UVXY run from $11 to $130 in two weeks. A very large account can simply ignore the movement. In this run up VIX went to 85 and UVXY went as expected to $130. This is a liquidation event for a small acount that is short. It is a non-event for a large account.
The trend is always downward. I do not ignore the trend. In 2020 there was adequate time at twice the 20 day average true range to enter via calls on the long side. Every day this asset declines in NAV based on the cost to roll expiring contracts forward intothe next set of short term contacts. this is theta - time decay creating death by 1000 cuts to the owner of thelong calls or UVXY common.
After each reverse split the movement again is always downward absent the 2018 Febrary Volmageedon spike or the 2020 Covid crisis.
it is most logical to buy puts that are one strike in the money or to sell a call vertical to capture the wasting asset theta gain.
In the event of a twice average true range movement to the upside - I buy calls.
It is most logical to buy puts immediately after the common is reverse split.
Fact: There are only been 4 in the last 281 months where SPY has been down 10% for the entire month.
Prior to the reverse split last month there were 8 reverse splits that resulted in $5000 becoming $4. This makes UVXy easy to game to the downside.
If an investor has a large account a few share sold short will continually b profitable until the small upside run. what characteerizes a small upside run?
The Covid Crisis in 2020 saw UVXY run from $11 to $130 in two weeks. A very large account can simply ignore the movement. In this run up VIX went to 85 and UVXY went as expected to $130. This is a liquidation event for a small acount that is short. It is a non-event for a large account.
The trend is always downward. I do not ignore the trend. In 2020 there was adequate time at twice the 20 day average true range to enter via calls on the long side. Every day this asset declines in NAV based on the cost to roll expiring contracts forward intothe next set of short term contacts. this is theta - time decay creating death by 1000 cuts to the owner of thelong calls or UVXY common.
After each reverse split the movement again is always downward absent the 2018 Febrary Volmageedon spike or the 2020 Covid crisis.
it is most logical to buy puts that are one strike in the money or to sell a call vertical to capture the wasting asset theta gain.
In the event of a twice average true range movement to the upside - I buy calls.
Comment:
Up 2xATR today.
Real rise.
Will it advance?
Who can say...
Real rise.
Will it advance?
Who can say...
(not 8 as above stated).