These leveraged VIX ETFs have terrible decay. It's not something you hold and hope for to go up again some day.
If trading was that easy, everyone would do it. Instead the decay kills you. This is why I buy UVXY puts every time the market tanks, because I know the VIX has to come down eventually and UVXY decays.
Also, never buy VIX unless it's under 12, and even then it's a crap shoot. It stayed below 10 for a long time back in 2017.
Also, leveraging makes it worse, and UVXY and TVIX are leveraged. Let's use TVIX 2X as an example with a 10% move down and 11.1% move up:
100 -10% x 100 = 90
90 + 11.1% x 90 - 99.9
100 - 2 x 10% x 100 = 80
80 + 2 x 11.1% x 80 = 97.76
So every time the underlying asset of a leveraged ETF moves up and down, it actually loses value even if the underlying asset recovers to the same price. Leveraged ETFs should only be used for short periods when you know the direction.
Still won't buy UVXY though, there are better plays out there.
This concludes the lesson on leveraged VIX ETFs.
Now you know why I buy UVXY puts whenever the market tanks.
Better to short UVXY than to hold it. Option premiums are high so I do quick one or two day flips.
Shorting indices is about the hardest play out there except when the Fed raises interest rates like last year. Hold off on shorting indices until we see inflation or a commie bastard elected president. Bare minimum, use indicators, I just posted half hour ago that the market was overbought, now it's scrolling down....
I only plot the indices so I now which way to trend, go long when I think the market is heading up, look for stuff to short when arket looks to head down. Then buy UVXY puts if the market tanks.