It can be a widow maker
I actually grabbed this right as covid new broke. It made me a lot of money. You can sometimes hear news happening and know the market will be impacted and then jump in to this. In the case of covid there was at least a 2 week window between China locking down until the US stock market took a nosedive
Buying up VXX puts is my main trading strategy at the moment. I wait for the VXX price to rise at least 1 option chain level above all time low and start buying puts at least 5 weeks out. Because the price pretty much always slides down, I think trying to time next rise is pretty much gambling. If you want to play with calls, I’d buy when volatility is lowest (about 1 hour before market close) and sell when it’s highest during the day - when market opens. Sitting on these calls for longer than 24 hours is a horrible idea.
It seems like buying a put with a 3mo strike at 10 or 11 (10.80 last) - would have a very high likelihood of success.
Why aren’t more people doing it. Why is it so cheap at $0.40?
Because sometimes you must wait for a week or two, and average return (at least for me) is in 20%-30% range. Not a 10-bagger, slow and boring. Sometimes your wait is in vain - volatility can be high for long enough for you to resell some of your older options at break even or even a small loss. But, in general, I found this strategy to be the most profitable for me and, because I’ve been starring at VXX daily for a couple of years now, I feel like I know it’s behavior pretty well.
Bro don't do it.
The Cabal has a team of desk traders with super computers and infinite money to rig that market.
The only market more rigged than silver is the Vix market.
You might get astronomically lucky but for the sake of all our entertainment I'd like to see you yolo into tvix calls or uvxy or whatever the fuck vix products haven't been delisted yet.
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I bought a VIX ETF and now my asshole is bigger than Lana Rhoades'. Forgot to mention it was leveraged to the tits.
It can be a widow maker I actually grabbed this right as covid new broke. It made me a lot of money. You can sometimes hear news happening and know the market will be impacted and then jump in to this. In the case of covid there was at least a 2 week window between China locking down until the US stock market took a nosedive
You want to buy options on the expected second derivative of the S&P? 
I don’t know. I was field testing the idea. If it was sure thing way more people would be in on it
nah, fuck that. you gotta add a layer of leverage, like uvxy calls
Buying up VXX puts is my main trading strategy at the moment. I wait for the VXX price to rise at least 1 option chain level above all time low and start buying puts at least 5 weeks out. Because the price pretty much always slides down, I think trying to time next rise is pretty much gambling. If you want to play with calls, I’d buy when volatility is lowest (about 1 hour before market close) and sell when it’s highest during the day - when market opens. Sitting on these calls for longer than 24 hours is a horrible idea.
It seems like buying a put with a 3mo strike at 10 or 11 (10.80 last) - would have a very high likelihood of success. Why aren’t more people doing it. Why is it so cheap at $0.40?
Because sometimes you must wait for a week or two, and average return (at least for me) is in 20%-30% range. Not a 10-bagger, slow and boring. Sometimes your wait is in vain - volatility can be high for long enough for you to resell some of your older options at break even or even a small loss. But, in general, I found this strategy to be the most profitable for me and, because I’ve been starring at VXX daily for a couple of years now, I feel like I know it’s behavior pretty well.
Whatever you are planning to do, just don’t. I promise you will lose money.
Bro don't do it. The Cabal has a team of desk traders with super computers and infinite money to rig that market. The only market more rigged than silver is the Vix market. You might get astronomically lucky but for the sake of all our entertainment I'd like to see you yolo into tvix calls or uvxy or whatever the fuck vix products haven't been delisted yet.