OT: TVIX Given the volatility of the last month
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Posted On: 03/06/2020 9:13:12 AM
OT: TVIX
Given the volatility of the last month, this post may not be OT. I have owned TVIX and this is the first time I didn’t lose money. However, since we are all here to learn and make prudent investing decisions, maybe this will help. If it seems inappropriate, I’m sure the moderators will address it.
I do not know how to use options. If I did, I would have made lots of money in this environment. In order to protect my portfolio, I incrementally bought 100 shares of TVIX from around $70 down to the high $30’s. My goal was to accelerate purchases as volatility increased. However, the CV prevented that from happening as much as I would have liked.
As the market tanked, I would sell 5-10 shares of TVIX as it moved up 10%-20%. What I found is that the faster the market tanked, the faster TVIX went higher. This AM I sold 5 shares at $173 and 5 more at 194.00. Since my ABP was $50, you can do the math. I have 20 shares remaining. Correct me if I’m wrong, but the advantage over options is that there is no expiration date.
The key is to be patient and tolerate dead money for extended periods of time. Exercise discipline and buy more shares as the pps decreases at least 10%. The better the market performance, the cheaper your TVIX shares. It hurts when the market is roaring and you have this money sitting, but a market sell-off is eventually inevitable,
Bottom line; my portfolio of 12 stocks is a couple dollars higher since the beginning of CV fears. No bragging here. I lost money the first two times because I lost patience and failed to exercise discipline. Most of us do not invest for a living. We haven’t developed strategies over decades. IMO, these black swan events will increase, not decrease. Money is too hard to accumulate, just to see it fly out the window without a fight. The saying for us older guys is, “Return of your money, not return on your money.” Hope this helps.
Given the volatility of the last month, this post may not be OT. I have owned TVIX and this is the first time I didn’t lose money. However, since we are all here to learn and make prudent investing decisions, maybe this will help. If it seems inappropriate, I’m sure the moderators will address it.
I do not know how to use options. If I did, I would have made lots of money in this environment. In order to protect my portfolio, I incrementally bought 100 shares of TVIX from around $70 down to the high $30’s. My goal was to accelerate purchases as volatility increased. However, the CV prevented that from happening as much as I would have liked.
As the market tanked, I would sell 5-10 shares of TVIX as it moved up 10%-20%. What I found is that the faster the market tanked, the faster TVIX went higher. This AM I sold 5 shares at $173 and 5 more at 194.00. Since my ABP was $50, you can do the math. I have 20 shares remaining. Correct me if I’m wrong, but the advantage over options is that there is no expiration date.
The key is to be patient and tolerate dead money for extended periods of time. Exercise discipline and buy more shares as the pps decreases at least 10%. The better the market performance, the cheaper your TVIX shares. It hurts when the market is roaring and you have this money sitting, but a market sell-off is eventually inevitable,
Bottom line; my portfolio of 12 stocks is a couple dollars higher since the beginning of CV fears. No bragging here. I lost money the first two times because I lost patience and failed to exercise discipline. Most of us do not invest for a living. We haven’t developed strategies over decades. IMO, these black swan events will increase, not decrease. Money is too hard to accumulate, just to see it fly out the window without a fight. The saying for us older guys is, “Return of your money, not return on your money.” Hope this helps.
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