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UVXY/VXX Bear call spreads?
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Anyone have any experience doing this, seeing as it loses value the overwhelming majority of the time. Of course the risk of a black swan event is there which I why I’m choosing to use a risk defined trade using collateral that is at max equal to only a couple % of my port.

To me this seems much better long term than just shorting/selling calls or going long SVIX

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You could just plot the MAs scroll back in time and see for yourself. But whatever works for you. I’ve made a fortune shorting, UVXY and VXX before that. It’s always been easier and more profitable for me to sell calls then it was selling puts. I made money both ways but I’ve had to roll the puts a lot more often.

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I’d say there’s a least one event a year that spikes the Vix. Vix plays aren’t something to play on the regular anyway. & yes you should always do positions relative to your portfolio size to avoid a margin call sure. Here’s a tip:

I prefer UVXY - seems to give better premium/price. On a weekly chart, plot the 20 & 50 week moving averages. Price is usually contained by the 20 week so if it goes higher than that you could take a small position and if it gets to the 50 wk you can get little more aggressive.

If you at the very least waited till it got close to the 20 wk (50 more conservative) that would put you in a good risk/reward position.

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Naked is better!! Just keep rolling out to higher strikes, eventually price will crash back down to earth

These are my favorites! But you’re putting the cart before the horse. The key is let the black swan happen first THEN jump on board selling calls. It’s also worth getting exercised on some so you can have a sizable position to ride it back down when things start to calm.

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10 months ago