The VX Complex comes under duress during Wall Streets Summer Fun Run.
Buying is an unprofitable game.
UVXY / VXX / SVXY is an assured loss.
When UVXY was trading over 11, I warned one trader off the Calls prior to the plunge, suggesting it would trade to 9.09 and likely knife right through it.
Tis the season for the Crims to run the table - even collaring the Markets bleeds it out.
Buying into Roll from AUG to SEP (M1 to M2) is a loser 86.3% of the time on Any and ALL Rolls, it's quite simple. Don't buy ahead of Settlement on the third Tuesday @ 4 PM EST of every Month unless the VIX is in an uptrend.
Even then - it's a lower probability as IF there is Roll Yield the Continuous Contract will need to close the Gap left below... it is basic VIX 101 Trading.
We can see that the Roll Yield is significant @ 240 Bips you are giving away on the VIG. Why in the f_ck would you do that?
The sane thing to do is this - Look out the Curve on the Term Structure and begin buying out the Curve then moving inward as Contango begins to move into far lower PREM.
In SUM you are gambling on 13.3% odds in your favor... Unimpressive at best.
It gets worse, the structured POS Products - SVXY UVXY VXX - get train wrecked by the Contango as 100% of SEP is 96% of the VXX on Wednesday... and it is bled out to OCT every day at a little less than 4%... with a Gap Below.... which normally fills this time of year.
Here's the exclamation point:
Trust VIX Short-Term Futures ETF (VIXY) - 13.44 -0.17 / Another total POS ETF where traders are subjective to Theft.
It IS SOH Time.
Here is VX Term Structure and Curve - you may follow it yourselves @ VixCentral.com
You are buying a $20 VIX Call for $27.00... if yer dumb enough to do so.
No, you are not, you buy the Micro VIX VXM out the curve spreading your Risk on TIME. No need to pay a Wall Street Goon huge cheddar for VX participation, ever. Never, ever do this... cuz UVXY SVXY VXX do.
Let the ETFs bag hold toxic spreads.
YOU DO NOT.
This is precisely why these ETFs spend 86% of their lives in a downtrend reverse split after reverse Split.
Had you bought 1 Share of UVXY Reverse Split adjusted when it began trading... you would have paid $1,000,000.
It is the same with SOXS SDOW and all the rest of these underperforming and Very Toxic Inverse ETFs. The Markets can trade sideways for weeks... they will continue lower due to their Derivative components.
VTS - Brent Osachoff on YouTube has a great deal of educational videos to bring you up to speed, feel free to ask questions here after you've done yourself the EDU - is vital to your success.
Knowing when to strike and when to do absolutely nothing.
I hate to see people robbed by the House who has it entirely rigged against you.
Note
China ups Taiwan War Games - US Center for Strategic and International Studies believes a battle of Naval Superiority could go Nuclear. Japan and the US would be the only Nations engaged.
"900 Fighter aircraft would be brought down. 1/2 of all US Aircraft."
"China will simply deploy a very rapid advance to overrun Taiwan - the highest percentage outcome"
"The US and Japan will be unable to defend Taiwan without enormous and potentially catastrophic loss."
Note
VX is priced for the Bulls to get whacked again FI the next 1.5 to 3% Fails.
A Pullback should arrive there, then we will see IF COrp Insiders maintain the Bid.
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