LONG LIVE THE VIX!!!! NOT FINANCIAL ADVICE!!!!!
The largest index in the world is overbought(RSI) on the daily timeframe with the MCAD extended to a 2+ year high.
This same index is also nearing a pivotal point on the calendar(Sept), as of the last 2 years and several years before.
Entering the VIX ETF shown in the subject of the publishing with quantities of 100 shares(at the end of market price shown today or $13.06 per share) and hedging by purchasing protective $14 Nov 16 22 PUT(s) for the ASK of $2.80(x100) would allow for a contractual exit(no slippage possible) with a small proceed offsetting the put cost, allowing for a theoretical stopped loss of 13-14% after fees and put cost(s) so long as the put contracts are equal in size to the equity position... if correct and the long equity position starts to appreciate, the protective put could expire worthless(due to poor management) and be considered a fee in the trade, increasing the cost basis from $1,306.00 to $1,580.65 making the breakeven for the protected position $15.81 per share at a worst case, or about half way up the current structure to the POC shown and derived from the current weekly range.
You could put that on and sleep soundly with comfort rooted in mechanics, or you could simply enter the equities with no protective put as a hedge and simply manage the position with the possibility of slippage, but you cant sleep in the unprotected position.
If you want to further complicate this one for the sake of generating income along the way to the finish line and/or mitigate potential losses in addition to the protective put, sell weekly COVERED calls (with strikes above your entry out of principal). Selling an OTM call with a strike just above that weeks range (this strike will change each week with the price action) all the while under your longer term profit target for the underlying equity (say $19 near the POC) would obviously limit upside in the event of getting called in one of the weekly call ventures, but is a smaller win a loss? or still a win? ;) The answer you find should tell you how greedy you are.
NOT FINANCIAL ADVICE!!!!!
According to TD, the net asset value is over $22 while the share price is only $P
This same index is also nearing a pivotal point on the calendar(Sept), as of the last 2 years and several years before.
Entering the VIX ETF shown in the subject of the publishing with quantities of 100 shares(at the end of market price shown today or $13.06 per share) and hedging by purchasing protective $14 Nov 16 22 PUT(s) for the ASK of $2.80(x100) would allow for a contractual exit(no slippage possible) with a small proceed offsetting the put cost, allowing for a theoretical stopped loss of 13-14% after fees and put cost(s) so long as the put contracts are equal in size to the equity position... if correct and the long equity position starts to appreciate, the protective put could expire worthless(due to poor management) and be considered a fee in the trade, increasing the cost basis from $1,306.00 to $1,580.65 making the breakeven for the protected position $15.81 per share at a worst case, or about half way up the current structure to the POC shown and derived from the current weekly range.
You could put that on and sleep soundly with comfort rooted in mechanics, or you could simply enter the equities with no protective put as a hedge and simply manage the position with the possibility of slippage, but you cant sleep in the unprotected position.
If you want to further complicate this one for the sake of generating income along the way to the finish line and/or mitigate potential losses in addition to the protective put, sell weekly COVERED calls (with strikes above your entry out of principal). Selling an OTM call with a strike just above that weeks range (this strike will change each week with the price action) all the while under your longer term profit target for the underlying equity (say $19 near the POC) would obviously limit upside in the event of getting called in one of the weekly call ventures, but is a smaller win a loss? or still a win? ;) The answer you find should tell you how greedy you are.
NOT FINANCIAL ADVICE!!!!!
According to TD, the net asset value is over $22 while the share price is only $P
Comment:
***According to TD , the net asset value(NAV) is over $22 while the share price is only $13.06.... a fact is other larger ETFs typically trade at a premium to their NAV when the popular indexes are appreciating....
Comment:
60 points or 240 ticks +/-, at $12.50 per tick is roughly $3000 dollars today on the secondary chart I used as the indicator for my published idea...... see what I did there ;) ? I used the SPY as and indicator for and ETF based on the..... VIX LMAO
Trade active:
Comment:
Trade closed manually:
Closing in profit if anything was still open.
Comment:
as mentioned above with a follow up on the 22nd, the gap I identified was filled as annotated below
Comment:
Dont forget this ETF is based on quarterly ROLLING FUTURES and those fees could impact this ETF and how its price performs against the dollar, regardless of what the VIX or VIX futures do at the same point in time.. I followed up saying this position could have been closed on the 22nd, and then managed the protective
puts to their ends, in this case to a profit, too. If I chose not to exit the shares position, I now have another chance to collect a handsome profit. NOT FINANCIAL ADVICE!!!
puts to their ends, in this case to a profit, too. If I chose not to exit the shares position, I now have another chance to collect a handsome profit. NOT FINANCIAL ADVICE!!!
Comment:
hmmmm, yep we opened at $15 and began a descent, but we should revisit $15 today(starting in 30 minute) as the FED members vote on rates.