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Update UVXY

I rolled my UVXY puts to a lower strike.

music selection: “Hologram” — Katie Herzig

I originally purchased my puts at the 13 strike (pre-split) on 14FEB2017.  I paid 8.20 a share.  I sold today for 9.15.  The trade was in force for 175 days and yields 24.16% on an annualized basis.  I have two other UVXY trades closed this year for 26.92% and 65.43%.  That brings my average annualized returns to 38.84%, which is a really good result.  I ordinarily do this with a 10% allocation in my portfolio so I am adding around 388 basis points to the portfolio on the year.

I bought new puts, this time for a reduced 8% allocation.  I paid 10.25 a share.  I bought 24 puts at the 20 dollar strike for $24,600.  Target return is 50% annualized.  I will be looking for more hedges in coming weeks.

Devour your prey raptors!

{ 9 comments… add one }
  • Aaron August 9, 2017, 2:19 pm

    How far out are you buying your puts?

  • financialfreedomsloth August 9, 2017, 5:34 pm

    got in on this trade as well, exact same price even!

  • Chris B August 9, 2017, 6:00 pm

    Another option to reduce risk on UVXY would be to switch from short puts to put spreads. With a floor on potential losses, you could both (a) survive a volatility spike and (b) afford to take on more leverage/allocation, which might allow you to earn more overall.

  • Duncan August 10, 2017, 4:15 pm

    Strangest thing.. I just sold my leap UVXY long put position. I had an order in almost every day for the same price.. and today, after two days of VIX shooting straight up, it decided to fill in two parts. I’m assuming someone covering a position, but very strange.

    • The Lizard King August 10, 2017, 6:20 pm

      Sharp moves cause a lot of limit orders that were intended to be unlikely to fill to get triggered. I say just count your blessings when you get a favorable fill.

    • financialfreedomsloth August 14, 2017, 8:57 am

      Yes I noticed too that UVXY went up and the puts also went up in price which isn’t logical. I’ll probably take this small profit and then when logic returns get back in!

      • The Lizard King August 14, 2017, 2:42 pm

        There is attractive pricing to sell today. I’m waffling on whether to take it.

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