miketranz
978 posts
msg #131533
- Ignore miketranz
modified |
9/27/2016 2:47:50 PM
Kevin,I agree 100% with everything you just posted.Just to get this straight,you're going long,trading VXX,but that instrument is trading counter to the market today.Wouldn't you use a long ETF? I don't get it.Thanks as always for your generosity and education.Miketranz....ps:VXX never traded @33.00 today..
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Kevin_in_GA
4,599 posts
msg #131534
- Ignore Kevin_in_GA |
9/27/2016 2:51:10 PM
mike - the system buys low and sells higher. Today, with the VIX down 9% and VXX down almost $2, seems like a good time to buy with the expectation of a mean reversion.
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mahkoh
1,065 posts
msg #131535
- Ignore mahkoh
modified |
9/27/2016 3:13:31 PM
I'll join you on this one. Bought 1 VIX Oct18 10 call for $5.40
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c1916
77 posts
msg #131536
- Ignore c1916 |
9/27/2016 3:44:07 PM
I've got my toe in this water as well with an October Risk Reversal on VXX 36/41 spread for $0.75.
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scottgboyle
4 posts
msg #131538
- Ignore scottgboyle |
9/27/2016 5:18:08 PM
Kevin,
The IB opening print for vxx was $35.60. Are the strategy rules to buy/sell at the open?
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pthomas215
1,251 posts
msg #131539
- Ignore pthomas215 |
9/27/2016 5:43:12 PM
you would have lost a lot of money if you bought the vix at the opening today.
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Kevin_in_GA
4,599 posts
msg #131540
- Ignore Kevin_in_GA |
9/27/2016 7:11:11 PM
Not really - while the entry was not optimal based on the prior stats it will likely end up profitable. And the open on the ^VIX today was 13.36, closing at 13.10 (down only about 2%).
Now if you had bought TVIX yesterday and held it overnight you are probably feeling badly ...
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Kevin_in_GA
4,599 posts
msg #131541
- Ignore Kevin_in_GA |
9/27/2016 7:13:18 PM
The IB opening print for vxx was $35.60. Are the strategy rules to buy/sell at the open?
Yes, but the strategy was developed on the ^VIX index, not on VXX. As I have noted here several times, the system is a trigger for trading volatility - how you choose to do that (ETFs, Options, VIX Futures) is up to you.
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pthomas215
1,251 posts
msg #131542
- Ignore pthomas215 |
9/27/2016 7:21:01 PM
Not really. I did buy TVIX yesterday and got out in pre market today for a little profit.
Kevin, maybe I am missing something. You said when you buy the VIX, you do so at market open. and you choose VXX. VXX opened at 35.60 and closed at 33.77. Not bagging on you--just wondering what I am missing if your response is "not really".
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Kevin_in_GA
4,599 posts
msg #131543
- Ignore Kevin_in_GA |
9/27/2016 7:43:57 PM
As I just said - "Yes, but the strategy was developed on the ^VIX index, not on VXX. As I have noted here several times, the system is a trigger for trading volatility - how you choose to do that (ETFs, Options, VIX Futures) is up to you." The system is a signaling system, but you cannot properly track the ^VIX with VXX or TVIX so your entries and exits will not be as good.
One of the nice things about the ^VIX is that you can see that it is lower hours before the open, as you can with VXX and XIV. I opted to wait and bought in on VXX at $34.00. How people trade this is up to them. And even with the drop in VXX it does not mean that the trade is busted.
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