Fighting back
Feb. 6th, 2018 04:41 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
ny_quant
I am of the opinion that the correction will be over relatively soon and the volatility will subside. The model doesn’t suggest buying XIV (now replaced by SVXY) so I didn’t add to what I bought yesterday.
Instead I bought VXX put options this morning, strike 35, expiration April 20. I paid 3.20, now they’re worth 4.60. To be clear, I’m not recommending anything (lest someone gets angry with me later), just sharing my views and experiences. I am also planning to buy more puts struck at 30 tomorrow or a little later to bet on my view that VXX will be back below 30 by April 20.
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no subject
Date: 2018-02-13 07:18 pm (UTC)According to a Fidelity spokesperson, cited in the Financial Times, retail clients cannot buy or sell SVXY, while margin requirements on other products betting on volatility have been increased. Fidelity expects to lift the temporary restriction on trading in "foreseeable future provided the market cooperates," according to the FT report. Fidelity didn't immediately respond to a request to comment on the report.
no subject
Date: 2018-02-13 07:28 pm (UTC)no subject
Date: 2018-02-13 08:54 pm (UTC)