You cannot hold this more than a few weeks without suffering rather severe time decay. Charts are misleading b/c the price is adjusted for splits.
This recently split 1:5. Since inception it's price has declined, adjusted for inflation, from over 1M per share. It's not a stock, it's a futurez fund.
Futures burn up and expire. The ETF decays. To win it you've got to buy it the day before a dump.
Look:
jacobit
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@DaddySawbucks, you CAN hold this more than a few weeks without suffering. You just have to time it.
DaddySawbucks
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@jacobit, Yes been there done that lol, suffered... but IMO ur probly right atm a fair bet, let's see!
sparo
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@jacobit, That's rarely true. And it's really hard to do even for the professionals. 99% of the time you'll lose money holding UVXY. The thing that people get wrong about uvxy is trying to time it at all. Take what market gives you - SPY heads back to touch the 60 DMA frequently. Or use whatever trendline you like. Just scalp it as the market hits a negative divergence rather than waiting for some kind of 5x return. If you get it wrong set a tight stop and wait for the next one.
DaddySawbucks
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@sparo, I'm in it EOD Friday. Bought VIX calls also. GL!
HHSPN
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@DaddySawbucks, Question, VIX is just index, right? It has no decay unlike leveraged plays like UVXY, TQQQ, SQQQ.
DaddySawbucks
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@HHSPN, The VIX is a pure theoretical index computed on a complex formula that measures change in demand for puts vs calls, more than just a P/C ration, it has a Byzantine calculation. It is NOT a stock and CANNOT BE TRADED. In your quotations you will always see bid/ask 0/0 as no shares exist.
When u trade it ur trading futures and options contracts. UVXY and VIXY contain only futures, they have no stock, so they decay rapidly. Do not hold this more than a week!
HHSPN
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@DaddySawbucks, I see. Thanks for the help. When you I bought VIX calls, you are actually playing UVXY (or VIXY).
jacobit
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@DaddySawbucks, gonna hold this for more than a week my man