VOLATILITY RISE It seems that a diagonal triangle is being shaped in the short term. If this hypothesis is right, there might be a sharp volatiliy rise (a drop in SVXY etf) And that would end an Irregular flat correction that has been taking shape since july 2014. Time will tell....by RedUpdated 114
SVXY -- Long via March 18th 31/35 Short Credit SpreadMarch 18th SVXY 31/35 ShortPut Credit Spread 1.64/$164 Max Profit Per Contractby NaughtyPinesUpdated 111
Using KAGI to swing trade volatility for multiday holdsSee notes on chart. Works for those who don't have time to watch volatility intraday. Doesn't require tracking contango / backwardation. *edit: prices based on close price of SVXY on the day of the Kagi transition.by codypd229
SVXY -- SHORT VOLATILITY PLAYIf you know anything about volatility products, you'll know that -- unlike VXX and UVXY, SVXY increases in value as volatility declines (it's an inverse) and suffers from "inverse contango" which ultimately means that, over time, SVXY's value will go to infinity in the absence of backwardation, splits (it's undergone two since inception -- a 2/1 in 2012 and a 2/1 in 2014), or a massive increase in volatility, which could arguably reduce its value to zero in fairly short order. For purposes of this play, however, you need not fret about the long term effects of "inverse contango" and "backwardation" -- all you need to really know is that as volatility declines, SVXY rises. At this point in time, we're at a fairly significant low in SVXY, and I'm betting on volatility contracting somewhat over the next 40 days or so such that SVXY finishes clear of my 35 short put strike at expiration or at a price that allows me to take the trade off for 50% max profit prior at some point between now and then: Feb 26th 30/35 short put vertical Probability of Profit %: 55% Max Profit: $201/contract Buying Power Effect: $299/contract Break Even: $32.99 Naturally, if volatility does not contract such that price moves above my short strike, I'll roll the setup for duration and credit.Longby NaughtyPinesUpdated 1
$SVXY$SVXY volume increased not sure how long it can maintain outside the lower bollinger bands by MsPutOptions0
$SVXY$SVXY looks like its headed lower BUT not sure how long it can hover outside the lower bollinger band by MsPutOptions0
$SVXY$SVXY levels of interest must hold here or headed lower, RSI needs to get a arch in its back by MsPutOptions0
48.5 key level here for support, see the circlesRising RSI, DMI diverging, mixed signals hereby TraderByInstinct1
SVXY long on a cool down in volatilityI think the disphoria has reached it's peak, and volatility will slowly fall.Longby munsifk0
Chart shared y'day and it broke out today58/60 levels next especially if we see $SPY ramp up into Fedby TraderByInstinct0
LOW VOLATILITY CYCLE -- CONSIDER GOING LONG VIX PRODUCTSAs a bread-and-butter, premium selling, index ETF trader (SPY/IWM/DIA/QQQ), low volatility environments are not favorable for my type of trading. My alternatives are to either just sit on my hands and wait for volatility to return or do something else, such as earnings plays or VIX trades. For some reason, I have taken a liking to shorting SVXY as compared to going long UVXY if prices are right in the underlying. I don't know what it is; I just seem to have trouble getting fills at the mid price in UVXY ... . Although I would like the price in SVXY to be higher, it is high enough to generate sufficient credit for my tastes via short call verticals on relatively short expiry time frames (two-three weeks max) with the short call leg at or above the 98 strike. Example: Sep 4th 98/101 SVXY Short Call Vertical POP %: 70% Max Profit/Loss: .93 credit/contract; 2.07/contract BE: 98.93 Notes: Due to the short time frame involved, I generally look to take these off at max profit or very near to it. Naturally, this is a very "play it by ear" sort of thing. If price appears to be flirting with my short call strike at any time before expiry (i.e., it's uncomfortably close to it), I generally opt to roll the setup out for duration and credit, especially when I've gotten in at a break-even above resistance ... . Shortby NaughtyPines0
Long for the time being....Long for the time being....looks like the yellow area could work in the short term....by Chief_Tardis112
svxy uvxyuvxy has plenty of room to drop, svxy just break out the long term downward channel, which is a good sign Longby mduck0
svxyEven though svxy is a little bit out of channel , but it is not touching the bottom line of the channel. Compared to other indicators, momentum has a nice beautiful upside divergence, stoch rsi crosses right upon the 20 line, which is a good sign. From the candle chart, one green candle stays at bottom and the right green one gets higher than the left red,which is also a good sign. So for, it could be making a good bounce back into the channel, if its in a perfect shape, svxy has a chance to touch the upper channel, I hope. However, stop loss should be set at about 54.80 if svxy can't get above the channel.Longby mduck0