ProShares Trust Ultra VIX Short Term Futures ETFArca
Description
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You are a hedge fund manager that sells short out-of-the-money puts and purchases out-of-the-money long puts. Your aim is to generate premium. In such a scenario, then, would it be appropriate to sell more out-of-the-money puts than purchasing out-of-the-money puts closer to the underlying cash price. ? Generally speaking the short puts with the higher preVerify that is correct and provide any feedback. Which put expiration dates combined between all the sold at-the-money puts and out-of-the-money acheive the most profitable position whereas long puts expire worthless less the value collected from short put premiums? For example, AMEX:UVXY will predominately trend downwards because constant volatility is unsustainable long-term. If AMEX:UVXY is currently at 16.00 per share, then would you suggest selling at-the-money long-term puts at 16 and buying out-of-the-money 5 puts , both with the same expiration dates ? In theory, as the higher possibility that AMEX:UVXY declines