What is the VIX? https://corporatefinanceinstitute.com/resources/knowledge/trading-investing/vix-volatility-index/
VIX > 26 was the trigger I was waiting for to scale into inverses, if UVXY SQQQ etc gap up I'll scale in if they run up again tomorrow
Intraday Trader's VIX Products What are some good VIX-wise products, ETF's etc, that short duration daytraders can consider ? KC starts her off with: UVXY SQQQ here's from S Yariv:SPY, SVXY, TVIXF, UVXY, VIIX, VIXY, VXX, VXZ https://seekingalpha.com/article/4184256-best-way-to-trade-volatility What else goes on the list?
Looking at UVXY for an entry point tomorrow...hoping for sub $10 entry... should be interesting with nonfarm and unemployment numbers coming out, last weeks uptick in yields is indicative of a shift in thought from institutions, Bitcoin, well looks like Saylor is propping it up instead of letting a healthy natural market correction take place...
https://www.elitetrader.com/et/threads/vix-volatility-adventures-uvxy-revisited.357641/#post-5363097 KC's - "Lessons learned trading UVXY: Best for daytrading during selloff days, not good for swings longer than 3 days Don't buy premkt gaps up, don't sell premkt gaps down Buy the dip, sell the rip. Always scale in, and use trailing stops Like VXX TVIX it is often a sleeper, grinding slowly down, then bam a big spike up.... I set buy-stop orders to automate entries Often has a run eod 3:30-4 When it runs up early by 11, tighten trailing stops, bc it usually drops later"
Assuming a UVXY 5% drop as happened during the day on April 23, what would be a good way to take a position to (Try To, lol) benefit from such a move? Has anyone used or looked into a Simple Options play to work a move like this for a simple day-trade? Accounting for friction, slippage, etc, what would a 5% down move in UVXY net out to if a trader had bought a put that day?
This is an example of how not letting go of a negative bias concerning markets can hurt you. You have literally been looking for a reason to short markets with leverage throughout 2021. Ken, it's a bull market in a huge economic recovery. There isn't going to be a massive correction; I hinted at this late last year. VIX is now 17; UVXY has gone from 9.54 to 4.45 since your post and SQQQ 14.48 to 10.69. I've noted you've said SQQQ is "breaking out" several times since. I know you are day trading some of them but why day trade the short side the long side was way easier. If news/trend changes it will require something major at this point. I'm not seeing it. Massive earnings for some firms, most commodities are up, GDP growth and strong retail sales, vaccines are working out so far.