tag:blogger.com,1999:blog-897456774486153841.post7153044422242093958..comments2024-03-29T03:46:10.767-07:00Comments on VIX and More: Triple ETF Options LandscapeBill Lubyhttp://www.blogger.com/profile/01241003017364820134noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-897456774486153841.post-50221505764926404892009-07-21T07:58:29.276-07:002009-07-21T07:58:29.276-07:00"if triple ETFs are the places premiums go to..."if triple ETFs are the places premiums go to die, then I want to own the mortuary."-- well-said Bill!<br />Write thinking indeed.......Tomnoreply@blogger.comtag:blogger.com,1999:blog-897456774486153841.post-31309367851815618702009-07-21T06:57:24.250-07:002009-07-21T06:57:24.250-07:00pls... dont ever use the options on triple etfs as...pls... dont ever use the options on triple etfs as the primary trading entities. they r for the hedging. buy otm call options for long positions hedging. buy otm put options for short positions hedging. for hedging purpose, i would luv to buy options on highly leveraged risky triple etfs to lower the premium cost. even if i lose the entire premium, my net gain could be still positive if the hedging premium cost was less than the gain from my primary trading entities. loading up the risky options hoping to pick the exact volatility bottom? why not buy lottery tickets? as some said, "i'd rather miss the volatility bottom"stonebathttps://www.blogger.com/profile/13067880752297712041noreply@blogger.comtag:blogger.com,1999:blog-897456774486153841.post-74584285744347448402009-07-20T16:41:11.339-07:002009-07-20T16:41:11.339-07:00Billy, You wrote.."Bill Luby said...
Hi Trad...Billy, You wrote.."Bill Luby said... <br />Hi Trading Nyhmph,<br /><br />These type of divergences are fairly unusual and usually bode well for the bears. I'll do my best to have a post about this up before tomorrow's open.<br /><br />Cheers,<br /><br />-Bill<br /><br />July 15, 2009 1:31 PM"......Thank you for the following post, sorry it took me so long to get back. NymphAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-897456774486153841.post-70315240724510391012009-07-20T12:30:57.219-07:002009-07-20T12:30:57.219-07:00Look like VIX going to teens? One interesting thi...Look like VIX going to teens? One interesting thing though, what's up with C? A nice green day today and C down almost 9%?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-897456774486153841.post-86665664832637445422009-07-20T11:42:34.703-07:002009-07-20T11:42:34.703-07:00Well said, stonebat.
Eric, without getting into d...Well said, stonebat.<br /><br />Eric, without getting into details, let's just say that if triple ETFs are the places premiums go to die, then I want to own the mortuary.<br /><br />Cheers,<br /><br />-BillBill Lubyhttps://www.blogger.com/profile/01241003017364820134noreply@blogger.comtag:blogger.com,1999:blog-897456774486153841.post-44266642195023787612009-07-20T10:33:49.386-07:002009-07-20T10:33:49.386-07:00Bill, how are you typically playing these? I have...Bill, how are you typically playing these? I have had very limited success with options on 3x ETFs. Right now, 3x ETFs to me, are where premiums go to die.Erichttps://www.blogger.com/profile/04630536319901757179noreply@blogger.comtag:blogger.com,1999:blog-897456774486153841.post-58062280421869660912009-07-20T09:20:28.827-07:002009-07-20T09:20:28.827-07:00i guess the implied volatility will continue to sl...i guess the implied volatility will continue to slide down if the market is range bounded throughout this summer. for those who earned a lot, triple etfs options provide cheaper way to hedge than vix options. thats like my car's insurance coverage gets tripled while the premium stays same. there has been no massive selling pressure since march. trying to draw any logical conclusions from the recent volatility actions will drive anyone insane... for now im just ignoring... as im ignoring the fundamentals as well. market is irrational...stonebathttps://www.blogger.com/profile/13067880752297712041noreply@blogger.com