07-25-2014, 01:10 PM | #4313 |
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Did anybody get in on LOCO?
I also saw this and thought it was hilarious. As long as the sheep keep buying Apple, I'll be happy. |
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07-25-2014, 06:02 PM | #4316 |
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I don't play earnings, but it looks like insiders have been buying TWTR so I'll go long on Monday. Its earnings are Tuesday after the bell. I've got a target of $50 by September.
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07-25-2014, 06:58 PM | #4318 | |
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I might try to pick it up and dump it fast, all depends on how TVIX goes for me. |
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07-27-2014, 12:17 AM | #4321 |
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07-27-2014, 12:55 AM | #4323 |
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07-27-2014, 01:52 AM | #4325 |
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TVIX and volatility are the worst possible things to try and trade/invest in a bull market. I mean if you want to buy some now and see for yourself what happens then go ahead. I'm just warning that these things decay like no other.
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07-27-2014, 01:51 PM | #4326 |
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I don't think you understand what you are talking about. TVIX is a hedging instrument.
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07-27-2014, 02:16 PM | #4328 | |
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Volatility is mean reverting. During long periods of low volatility the chance of sharp spikes upward is greater. A great way to hedge these sharp spikes is to take a position in something like TVIX and have a very short holding period. It is a better idea than selling options..... Here is a scenario - Let's say you think some news will come out that might cause the market to sell off (Fed statement, etc etc), but you want to smooth out the volatility in your portfolio. Using something like TVIX will hedge this spike in volatility. Then just close it out at the end of the day. Volatility is an asset class. You are capitalizing (or at least trying to) on the perceived value. Now there are some issues with TVIX and others like it. The average person should most likely stay away from it because it can be difficult to wrap your head around its mechanics. Also, hedging always costs you money....... |
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07-27-2014, 02:43 PM | #4329 |
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Oh, so you think there's going to be some headline on Monday to drag us lower? We're in a bull market, TVIX being useful has only been a 0.1% occurrence the past couple of years. I do think the bull market is drawing to a close, but I doubt the markets will go down enough to make holding TVIX worthwhile.
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07-27-2014, 02:47 PM | #4331 | |
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07-27-2014, 02:50 PM | #4332 |
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Do you know what hedging is? Your statement is moot. Why would you wait until there is a spike in volatility to hedge volatility? That complete defeats the point! You'd be too late!
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07-27-2014, 03:53 PM | #4333 | |
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07-27-2014, 03:56 PM | #4334 | |
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