Dennis Gorelik (![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png)
dennisgorelik) wrote2021-02-12 07:30 pm
dennisgorelik) wrote2021-02-12 07:30 pm
Selling UVXY PUTs
1) Stock Market went a bit crazy at the end of the day today:
S&P 500 reached 3,934.83 (all times high).
VIX dropped to 19.97
We did not see VIX that low for almost a year (only before March 2020 Covid panic).
UVXY is at record low $9.42
2) So I sold a lot of UVXY PUTs today with strike price $11 and expiration next Friday 2021-02-19.
That is a big bet that VIX is going to jump back into 21+ territory (or, at least, will not go significantly below 20).
3) This time I am not nervous about this big bet (but I still understand that I may lose).
4) I think that the next Monday (2021-02-15) S&P 500 is likely to decline at least a little bit from today's record gains.
S&P 500 reached 3,934.83 (all times high).
VIX dropped to 19.97
We did not see VIX that low for almost a year (only before March 2020 Covid panic).
UVXY is at record low $9.42
2) So I sold a lot of UVXY PUTs today with strike price $11 and expiration next Friday 2021-02-19.
That is a big bet that VIX is going to jump back into 21+ territory (or, at least, will not go significantly below 20).
3) This time I am not nervous about this big bet (but I still understand that I may lose).
4) I think that the next Monday (2021-02-15) S&P 500 is likely to decline at least a little bit from today's record gains.