Stock Market Intraday Chat: May 7 - May 11 - Page 7

Quote:

Originally Posted by Philosuffer 

You will be okay my friend, things are not as bad as they seem.

 

You probably bought about 45 shares of UVXY, even if you lose a $1 per share that would be $45 while the trading costs it self can be $20. Those are not significant in the big picture.

 

One should be happy always to pay a small price to learn a big lesson. That said, you may break even or even exit in green. So, relax and keep your calmness.

I think you can sell it on Thursday.

 

 

Yes, everyone here is nice but you will see some nasty comments once you become part of the family

We just have a tradition of treating guests very nicely!

Ok...last educational question...I swear.

I looked over what you told me and it says my account could be place on a 90 day restriction if I sell today...but then it also says this:

Restrictions on an account may be avoided if the security that was purchased is fully-paid for within five business days after the trade date by:

• Depositing enough additional cash into your account to fully fund the purchase;
• Combining accounts to increase the amount of cash available to pay for the purchase.

I made a deposit today to cover more than enough for the funds and it will show up in the account on Thursday...that's within 5 days.

So I shouldn't penalized, should I?

ES failed to make any kind of attempt at Fridays 1369 level, this leads me to believe we have further down to test.

Brace for it... Im thinking 1330-1335 if the bears can get their act together early this week.

Wow, AAPL being such a drag, the newby longs must be freaking out that its not gaining $20 every day anymore.

A move to $550 will get me extremely interested in some June calls.

That is good news. If you deposited funds today (at least in the same amount of your UVXY trade value) then you can sell UVXY today without any problems.

Quote:

Originally Posted by johndoejohndoes 

 

Ok...last educational question...I swear.

 

I looked over what you told me and it says my account could be place on a 90 day restriction if I sell today...but then it also says this:

 

Restrictions on an account may be avoided if the security that was purchased is fully-paid for within five business days after the trade date by:

• Depositing enough additional cash into your account to fully fund the purchase;
• Combining accounts to increase the amount of cash available to pay for the purchase.

 

I made a deposit today to cover more than enough for the funds and it will show up in the account on Thursday...that's within 5 days.

So I shouldn't penalized, should I?

Johndoe, will the deposit make your account larger than $25,000? If so, you don't need to worry about buying and selling the same day ever again.

Etiher way, you can get a 90 day restriction removed one time anyway, just call your broker and tell them you didn't know about that rule.

They want you to trade so they can make money off you and will happily remove it.

Quote:

Originally Posted by Philosuffer 

That is good news. If you deposited funds today (at least in the same amount of your UVXY trade value) then you can sell UVXY today without any problems.

 

Awesome...I see UVXY was above $20 a month ago.

Is there any chance it could reach those points again if I hold onto it for a little while?

Or is it better to sell if it hits 10% profit today and get out with some gains?

with uvxy, take your money when you can.   because it will take it back, and a lot more.

John, you are positioned with a lot of other longs. From your standpoint UVXY is a great hold for countering your long risk. You don't have that much in it, so it could be a useful tool. I don't recommend volatility instruments unless you know everything about them. You actually may have nailed a decent positioning for the medium term. Just be cautious to what others state from now on.

I don't consider volatility instruments a pure long hedging mechanism, but there are parallels into the inverse movements sometimes. You need to do more research so you can truly understand what is moving that volatility instrument.

I don't see UVXY making 10% gains today from what been going on...unless the price goes up around close?

Quote:

Originally Posted by rando 


Sure it could reach that price, but it already appears you don't know about the "negative roll yield" in UVXY which effectively bills you a monthly fee of around 5-10% just for holding it [ed: based on today's delta between VIX and front month futures.] Now it also appears you do not understand the "decay" which occurs in all leveraged products. Therefore, if these statements are both true, you should be looking to get out of UVXY as quickly as possible, especially if you get a look at a profitable exit. Do not enter leveraged products if you don't understand them fully. Check the UVXY and TVIX threads to read up on how to understand the VIX derivatives. Also, you will read some horror stories of people who didn't know about the details of these VIX products losing a lot of money because they didn't know what they are before buying. Same story again and again. Scam ETFs unless you really, really know what you are doing.

You get billed 5-10% a month?

Wow, I had no idea...yeah I'm hoping to get out today with very minimal gains/losses.

European markets are closed, now US markets can play ball.

Quote:

Originally Posted by StockJock-e 

European markets are closed, now US markets can play ball.

Just like to point out that the FTSE is red from last week, its Mayday bank holiday in the UK today and markets are closed.

Makes me homesick as I'd be with my mates doing Locks Bottom to Hastings on my yammy R1.....    (Bike run)

Quote:

Originally Posted by buy4highselllow 

Just like to point out that the FTSE is red from last week, its Mayday bank holiday in the UK today and markets are closed.

Makes me homesick as I'd be with my mates doing Locks Bottom to Hastings on my yammy R1.....    (Bike run)

You forgot to include "in the rain."

Quote:

Originally Posted by rando 


No you do not 'get billed' I think what I said was that you effectively get billed. When futures trade higher than the underlying, futures come back to the underlying price more and more as expiration gets closer. You need to know this stuff before you have a puncher's chance to win the VIX game. Check the thread, look for the rollover mentions and explanation of how contango works to erode the price of UVXY and TVIX.

Can you link me to the thread please?

Having a hard time finding it...

Quote:

Originally Posted by StockJock-e 

You forgot to include "in the rain."

(Last post today from me unless its market related) 

In the rain !!!    Yep spot on !!!  Seldom do we get a sunny one !  Assumed everyone knew it always rains in the UK on a Bank Holiday  grrrr