XIV SVXY LEAP

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var
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XIV SVXY LEAP

Post by var »

hi guys,

just watching how ViX and XIV move.... i decided i wanted to invest in XIV in some fashion.

the nice thing about XiV it theoretically should be in backwardation most the time.

since xiv has no optons i used SVXY for the LEAP

for fun..

just bought some jan 20 17 62 call options.
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Mark Leavy
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Re: XIV SVXY LEAP

Post by Mark Leavy »

var wrote: i decided i wanted to invest in XIV in some fashion.
<snip>
since xiv has no optons i used SVXY for the LEAP
<snip>
just bought some jan 20 17 62 call options.
I think the phrase you are looking for is roll the dice.

Good luck, cowboy!

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var
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Re: XIV SVXY LEAP

Post by var »

Mark,

I only wish i was smart\lucky enough to get in earlier...lol...

HB said we can experiment in our VP!



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var
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Re: XIV SVXY LEAP

Post by var »

that said the VIX is sorta its own gyroscope.... take the inverese of that...

keep it simple.... one symbol!.... get in.... make profit get out...
Kbg
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Re: XIV SVXY LEAP

Post by Kbg »

Be careful. Real life XIV tubed 78% in 2011, 2008/9 simulated 92%. Study everything you can about them for at least a couple of months before you even think about it.

As a rough guide you are buying a 3-5x stock ETF that does well in a sideways market.
var
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Re: XIV SVXY LEAP

Post by var »

It inverse Vix?  So it should do well when volatility drops. 
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Mark Leavy
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Re: XIV SVXY LEAP

Post by Mark Leavy »

var wrote: It inverse Vix?  So it should do well when volatility drops.
var,

You should listen when kbg talks about inverse volatility.  If you don't understand him, then stop.  Hang on to your money and keep talking until you understand him.
var
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Re: XIV SVXY LEAP

Post by var »

kbg and mark,

good points about XIV.
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Re: XIV SVXY LEAP

Post by Kbg »

So here's a good real life demo of XIV. I have a leveraged PP that use a dash of XIV to spice things up that I have been running since early 2014. When it rises or falls 50% from its portfolio weight I rebalance back to target weight. Sell results run from -13% to + 56%

My...

Jan 2015 XIV is down 18%...some of this will be sold tomorrow and was down 50% when I did a Feb 2016 rebalance/purchase

Dec 2015 XIV is down 2%

Feb 2016 XIV is up 60%...no there isn't a typo between Dec and Feb.

Combined holdings are up 20%

This should give folks a good understanding of what a wild ride XIV/SVXY are.

Small bites, buy when it hurts, sell when you don't want to...and remember you are doing nothing more than selling stock market insurance. Basically free money until you have to pay out claims and then it's not so fun anymore.
var
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Re: XIV SVXY LEAP

Post by var »

hey guys

so far this is my experience but a  LEAP call i think in jan when market was in turmoil...
sold got out even weeks ago.

bought svxy shares instead (this thing moves like an option so u might as have shares to not worry about time decay)

up 11% so far.... i prob gonna sell it soon when its up 20%....

IT MOVES FAST...TAKE GAINS WHEN U CAN!!!
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