Dec. 30 at 4:07 PM
$UVIX Probably closes near
$5.50 today, and then
$5.30 tomorrow, and near
$5.00 on Friday. Great money pit to burn your money away everyday.
Yes, there will be a brief spike someday, but this is losing nearly -18% a month while waiting for that spike.
So if you waited few months and incurred ~50% loss, you'll need 100% spike just to break even.
I.e., You buy at
$10 and hold it over few months until it drops to
$5 for 50% loss. Now you need 100% spike to get back to
$10 to break even.
Don't buy long. Just wait for the spike to peak out, and then do one of the following:
1. Long SVIX
2. Short UVIX
3. or put options on UVIX
Long UVIX is THE worst choice. To be a successful trader, you need to choose the best risk/reward choice. Those doing long UVIX is picking the worst risk/reward choice, so don't follow what they are doing as they are leading you to losing money along with them.
$UVXY $SVIX $VXX $SPY
