VIX Futures Curve Means Trouble For VIX ETFs [View article]
These instruments are for the advanced trader with a very short time window and the understanding that the product has time decay. When I trade the UVXY, everyday, I strictly trade it on the technicals and I almost never hold it overnight. I am up about 35 percent in August trading the UVXY these are not investments they are trading instruments!!
VIX Futures Curve Means Trouble For VIX ETFs [View article]
These instruments are for the advanced trader with a very short time window and the understanding that the product has time decay. When I trade the UVXY, everyday, I strictly trade it on the technicals and I almost never hold it overnight. I am up about 35 percent in August trading the UVXY these are not investments they are trading instruments. Contango or no contango trade them on the chart technicals and you will win.
"Market fundamentals do not justify these extremely low levels of volatility," writes JPMorgan's Marko Kolanovic, attributing the recent lack of action to large option sales (as traders try to generate yield) pinning the S&P near 1400. Much of these positions are expiring today, which should "loosen the grip" on the VIX (VXX). (h/t tradefast) [View news story]
I trade UVXY all day everyday and I am up about 114% over the last 3 months while the instrument itself is down about 80% in the same timeframe. So in cantango or out of contango with roll is actually quite irrelevant. This is a trading instrument not an investment, the time decay on UVXY is wicked, the bottomline in trading this and others like it is to strictly trade on the chart technicals and you can get big.
More on the VIX below 15: A chart of the VIX going back to 1994 shows 2 lengthy periods in which it held below that level - both were accompanied by healthy returns for the S&P. The VIX today -1.5% to 14.63. [View news story]
UVXY is based on short term CBOE VIX futures you can track those from the CBOE website.
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VIX Futures Curve Means Trouble For VIX ETFs [View article]
VIX Futures Curve Means Trouble For VIX ETFs [View article]
"Market fundamentals do not justify these extremely low levels of volatility," writes JPMorgan's Marko Kolanovic, attributing the recent lack of action to large option sales (as traders try to generate yield) pinning the S&P near 1400. Much of these positions are expiring today, which should "loosen the grip" on the VIX (VXX). (h/t tradefast) [View news story]
More on the VIX below 15: A chart of the VIX going back to 1994 shows 2 lengthy periods in which it held below that level - both were accompanied by healthy returns for the S&P. The VIX today -1.5% to 14.63. [View news story]