Original post: https://steemit.com/finance/@mwanacomete/a-bet-on-lower-volatility
[It's my intention to share interesting trade ideas, posting before or just after I make the trade to discuss the reasoning behind it, and after exiting the trade, to share the results and talk about the experience. I have made a simple spreadsheet, updated live, that you can take a look at. The link is at the end of this post.]
Hi friends,
This post gives the results of the trade I made and described in the post above.
Recapping -- I purchased OTM (out-of-the-money) puts on UVXY for $.07 ea. (plus commissions) with money from the previous week's bull call spread on the same underlying (see https://steemit.com/finance/@mwanacomete/an-expiration-week-vertical-spread-idea-on-proshares-trust-ultra-vix-short-term-futures-etf-uvxy for that discussion).
Remember the sudden spike in the VIX that week? As I described in a subsequent post (https://steemit.com/finance/@mwanacomete/results-of-an-expiration-week-vertical-spread-idea-on-proshares-trust-ultra-vix-short-term-futures-etf-uvxy), I closed that trade for a 191% gain in three days (something like a 14,700% gain annualized!) and put money into my conviction that the VIX would fall in the next two weeks.
It turned out to work out well, and I closed the last of the puts today, for an average of $.32 ea., making 357% on that trade in 7 days (... an 18,615% annualized gain!), as the VIX settled back down and UVXY dropped from somewhere over $15.5 to under $11.7.
I've updated the trade discussed above and others in my open Steemit portfolio --
https://www.icloud.com/numbers/0yrD3oxIhcCOA59PS7csVPffg#.mwanacomete.s_Steem_Portfolio
Feel free to take a look at it, follow it, comment, etc.
Happy trading!
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