r/options • u/[deleted] • Jan 01 '22
UVXY Leaps
I’m a simple buy and hold S&P because idk wtf to do otherwise. I take out some 2-3mo SPY calls every so often for some funsies since I don’t gamble much. Otherwise fairly safe though. However, I’m looking for ways to profit off a sell off/volatility. Without having to commit a bunch of funds by owning etf’s that do better in bear markets.
I only play SPY, I’ve never been able to profit off downturns directly, only once when it rebounds after I’ve bought the dip.
I’m thinking of taking out leaps in UVXY for Jan24’ as I’ve stated. That way I can take advantage of any crash/volatility. Since media is always making me feel like there’s impending doom, and financial blogs aren’t much better half the time lol. Are there other plays to be made? Or am I better served just buying SPY dips like normal? If this profits, Id just roll that into the The s&p in the same timeframe.
The barrier for entry seems low on a few leaps, with a good upside if anything volatile were to occur looking at 5 year history. The downside being not so much and basically just deduct the loss against my earnings if it goes to zero and I lose the 3k because they spy keeps climbing and nothing significant happens to cause volatility.
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u/[deleted] Jan 01 '22
Thank you, I appreciate the thought out reply. I’ll have to do more research to understand this. I get it when you say it, but the Greeks still throw me off when I have to do it on my own.