March 17th, 2020

2009

GUSH - 2020-03-17 - Final exit

The remaining piece of my sanity suggested to me, that I have to sell the rest of GUSH at market price -- and just cut losses.
I do not work with that 3x instrument correctly and do not have right temperament to do that.

So I sold the rest of GUSH at ~$0.56/share
I could have sold at better price, and possibly, GUSH may still grow 3x from the current price in the next few days.
But that does NOT matter.
I should not use 3x instrument as an investment.

Instead of GUSH - I bought United Airlines at $32/share.
That is my long-term bet that Coronavirus concerns are seriously overblown and people will start flying again after the panic will subside.
How long will it take people to calm down - I do not know. May be several weeks, may be several months. But with long term stock investment - that does NOT matter.

BTW, GUSH went down today in spite of S&P 500 going up.
That is, probably, the compensation for GUSH going up yesterday when S&P 500 went up.

Originally posted at: https://dennisgorelik.dreamwidth.org/184761.html
2009

UVXY PUT - betting on decay

VIX is a volatility index.
UVXY is an ETF that corresponds to 1.5x VIX changes.

Because VIX itself is very volatile, UVXY decays a lot (usually, more than 50% per year), in spite of a modest 1.5x leverage.

So, today, I made a bet that in 2.2 years (2022 June 17) UVXY will drop well below $20/share price (currently UVXY is at $87.53)
I bought 8 .UVXY220617P20 PUTs with average price $9.42/share (Strike price $20/share. 100 shares each PUT. Expiration date: 2022 June 17)

I expect that in a couple of months .UVXY220617P20 will go up to ~$15/share -- either because of decay (if volatility stays high) or because of the drop in volatility itself.

Originally posted at: https://dennisgorelik.dreamwidth.org/185008.html