what are you selling today?

[gokou3]

Just sold some XIV today.  Up ~50% in the two months that I have held it.  Yes I am bragging about my luck. 

Will reload when the VIX goes above 20 again.

[rpadebet]

Just sold some XIV today.  Up ~50% in the two months that I have held it.  Yes I am bragging about my luck. 

Will reload when the VIX goes above 20 again.

Short VXX and/or Long XIV (for a small portion of the portfolio though) has been a consistent winner the past few years. I don't think it is entirely luck, the construction of these products has something to do with it. As long as you can stomach the volatility of these volatility products, I think the shape of the VIX curve kind of guarantees some of this return. I hope they don't pull these products from the market soon....

[yitech]

Just sold some XIV today.  Up ~50% in the two months that I have held it.  Yes I am bragging about my luck. 

Will reload when the VIX goes above 20 again.

Short VXX and/or Long XIV (for a small portion of the portfolio though) has been a consistent winner the past few years. I don't think it is entirely luck, the construction of these products has something to do with it. As long as you can stomach the volatility of these volatility products, I think the shape of the VIX curve kind of guarantees some of this return. I hope they don't pull these products from the market soon....

I am short VXX/UVXY as well. The near-term of the VIX curve in contango virtually guarantees the decay. I like to spice it up with levered UVXY to let the compounding effect of volatility due to leverage to work in my favor.

[RichardGibbons]

I'm also in XIV and SVXY (which is nice because it has options and it's fun to sell covered calls when the VIX gets low). 

It's worthwhile noting that XIV will at some point go to zero in a single day and UVXY at some point will probably go up ten times in a short period of time.  So any investment strategy that involves those ETFs should be designed to be resilient to those sorts of events.

[rpadebet]

I'm also in XIV and SVXY (which is nice because it has options and it's fun to sell covered calls when the VIX gets low). 

It's worthwhile noting that XIV will at some point go to zero in a single day and UVXY at some point will probably go up ten times in a short period of time.  So any investment strategy that involves those ETFs should be designed to be resilient to those sorts of events.

Yes, I have also wondered what happens to XIV if VIX jumps 100% in a single day (not inconceivable now given VIX is in the 12-14 range). These products are based on VIX futures. Would the exchange allow a +100% move on the futures in a single day? Aren't there margin rules and/or disruption rules designed to limit the movement in a single session?

[RichardGibbons]

Yes, I have also wondered what happens to XIV if VIX jumps 100% in a single day (not inconceivable now given VIX is in the 12-14 range). These products are based on VIX futures. Would the exchange allow a +100% move on the futures in a single day? Aren't there margin rules and/or disruption rules designed to limit the movement in a single session?

If XIV drops 80% in a single day, it will automatically be liquidated.  This is the scenario I mean when I say it'll eventually going to 0.  (I'm curious what happens if it gaps to over a 100% loss.  I guess the fund company gets burned in that case.)

I'm not sure if there are restrictions on the VIX futures movement.  I'd guess not.

[jm25]

Sold BAC calls today. Still holding the common shares.

[ourkid8]

The fun is not over with BAC but good luck! 

Sold BAC calls today. Still holding the common shares.

[jm25]

The fun is not over with BAC but good luck! 

Sold BAC calls today. Still holding the common shares.

It is still my largest holding! I'm enjoying the ride and will continue to do so!

[jm25]

Second Cup (SCU)