UVXY Vol Play

voltrade

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Hello,
I am considering to buy UVXY for my 401k portfolio?
Currently it is $7 - $8 range, last august it was $250.
I am looking forward for vol pop where vix will go to 30 in the next 2 years?

Any advise on this is appreciated? Any gotcha's i need to be aware of?

Best
- Vol Trader
 
I advise you not to , first it is a short term ETF meaning it is based on VIX near futures contracts , so the continuous rollover at each VIX futures expiry will kill you because futures contracts trades at a premium already , plus it is an Ultra ETF meaning it has double the effect which makes things worse , unless VIX pops in the near future . If you insist in playing the VIX at least take a look at VXZ but i don't like it either .
 
I advise you not to , first it is a short term ETF meaning it is based on VIX near futures contracts , so the continuous rollover at each VIX futures expiry will kill you because futures contracts trades at a premium already , plus it is an Ultra ETF meaning it has double the effect which makes things worse , unless VIX pops in the near future . If you insist in playing the VIX at least take a look at VXZ but i don't like it either .

Thanks for your quick response. I must admit i do not completely understand roll over and contango effect. From a layman's perspective, if you buy and hold/wait (maybe 2 or 5 years) for VIX to touch 40, then I thought UVXY (currently @ $7.xx) and VXX (current @ $20.xx) will quadruple? I may have gotten this all wrong, appreicate your input.
 
Thanks for your quick response. I must admit i do not completely understand roll over and contango effect. From a layman's perspective, if you buy and hold/wait (maybe 2 or 5 years) for VIX to touch 40, then I thought UVXY (currently @ $7.xx) and VXX (current @ $20.xx) will quadruple? I may have gotten this all wrong, appreicate your input.

It depends when it will happen , if it happens within few months then yes you may make good money , but 2-5 years is a long term to play the VIX ,the UVXY chart says it all .
 
Hello,
I am considering to buy UVXY for my 401k portfolio?
Currently it is $7 - $8 range, last august it was $250.
I am looking forward for vol pop where vix will go to 30 in the next 2 years?

Any advise on this is appreciated? Any gotcha's i need to be aware of?

Best
- Vol Trader

Advice from a rookie: I'm with Tar here, I shouldnt jump in. From a technical perspective, price is still underneath a massive Kumo cloud. and there are no signs of a Kumo twist coming up.... stay on the side line!

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Thanks for your input. If it is not too much, can you pls alert when it is time to buy? As you can see, it is a ride of a lifetime!! UVXY dropped $250 to $7 in last 9 months, this will happen again... just we don't know when???
 
Thanks for your input. If it is not too much, can you pls alert when it is time to buy? As you can see, it is a ride of a lifetime!! UVXY dropped $250 to $7 in last 9 months, this will happen again... just we don't know when???

isn't that exactly what makes you a trader? YOU got to do the works here man.

a classic advice is ..buy when price is high. sell when price is higher.

If price drops from $7 to $ 0.99 I personally would't call it the ride of a lifetime.
 
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