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Update UVXY puts

I sold the 8 strike puts.

music selection: “Mountain Song” — Jane’s Addiction

On 17NOV2016 I purchased 45 of the 8 strike 18JAN2019 expiry UVXY puts for 5.65 a share.  The position has moved into the  money so it is time to sell.  This morning, I sold the position for 5.85 a share.  The position was open for 48 days and yielded 26.92% annualized.

The fund will be undergoing a 1:5 split on 12JAN2017 so I am going to wait until then to roll the position.  I have a 6 strike position in my tIRA account that I might sell before the split as well.  I’ll keep you posted.

Devour your prey raptors!

{ 9 comments… add one }
  • catfishwizard January 4, 2017, 4:06 pm

    Another reverse split after only six months! What a dumb ETF…

    This trade still boggles my mind and I guess it messes up the market makers too since they can’t seem to price the fund’s decay rate properly…maybe they’re getting better though? I seem to remember you getting triple digit annualized returns before.

    Not that 26% is anything to sneeze at, but there appear to be less fish in the barrel to shoot.

    • The Lizard King January 4, 2017, 8:55 pm

      Part of it is just dumb luck. Worst I’ve ever done in this trade is 16% annualized. That’s enough to keep me coming back.

  • Seb Loeb January 5, 2017, 7:20 pm

    Just exited the 8 strike at 5.90!

    Maybe you could make inversing all the r/wallstreetbets YOLO plays. They love their 3x ETFs there 🙂

    • The Lizard King January 5, 2017, 8:08 pm

      Most of the leveraged plays don’t have liquid options like VXX/UVXY do. Shorting the underlying is problematic because of high borrow fees and the habit of getting stepped out of the trade at the worst possible time when shares to borrow dry up.

      • Seb Loeb January 5, 2017, 10:35 pm

        I wasn’t being wholly serious about that. But would like to see a post on how to choose discount bonds. Thanks!

        • The Lizard King January 6, 2017, 2:37 am

          Thanks Seb. I’ll put Discounted Bonds selection in the queue!

  • JRBROKER January 7, 2017, 12:41 am

    What’s wrong with holding the position through and after the split??

    • The Lizard King January 7, 2017, 2:09 am

      Usually nothing. I’ve held through the splits before. Sometimes immediately before and after, liquidity gets really low. But it always recovers.

      • JRBROKER January 7, 2017, 2:51 pm

        Perfect! Thanks for your answer…

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