Update VXUP and VXDN were terminated on September 8th, 2016. They never accumulated enough assets to be financially viable. The naysayers on these funds were right—there was no way these funds could perform the way their prospectus or marketing materials suggested. They didn’t understand (and didn’t bother to learn once it was pointed out) how their funds would be arbitraged against VIX futures in such …
For a couple of weeks USO has been in a trading range between 32 and 33.5. Bought USO at 32.77 and sold S33 10-Sept calls at 0.30. Break even is 32.47, maximum profit is $0.53 per share.
At 9:51 EDT Wednesday I was setup for a couple days with my purchase at of SPY at 106.73, long S104 3-Sept puts at .23 and short S107 3-Sept calls at 0.80 for a breakeven of 106.16 and a max profit of 0.84. Twenty minutes later I closed out SPY at 108.11, S104 puts at .08, and bought back my calls at 1.62 for a …
The closing value of SPY is within about a dollar of the 2010 bottom trendline in the chart below. There is lots of talk about a double dip recession, but I’m betting on a bounce.
After several sell-off days with low volume, the buyers seem to be coming back. I bought SPY at 105.22, sold 27-Aug 106 calls at 0.58. Breakeven is 104.64. Maximum profit is $1.36 per share. Livevol shows the 27-Aug 106 IV’s at 28 and the 18-Sept monthly IV for the 106 calls at 24. Right now, Livevol’s IV numbers are the only ones I believe for …
