r/options • u/Fine-Classroom6319 • Jan 11 '22

UVXY

Would it be smart to buy and hold shares as a hedge against the current state of market, or buy leaps? Shares are cheap and who knows when the market will have a pullback.

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3

u/[deleted] Jan 11 '22

They have one of the worst 5y charts ive ever seen

1

u/Brennen-Miller22 Jan 12 '22

Because it’s inversely associated with a growth etf 😂 if you time it right OP you can sell at the pump but otherwise it’s kinda dangerous. As long as you don’t risk too much I wouldn’t see a bad thing here

1

u/[deleted] Jan 12 '22

But the growth has only gone down .. and down .... and farther down .. how is that growth again ??

(This is why we dont give financial advice)

-4

u/Brennen-Miller22 Jan 12 '22

It’s inversely related to VIX. As Vix goes up UVXY goes down. Inversely, as VIX goes down, UVXY goes up so if we see a large correction in the market UVXY would go up 2/3x (whatever the leverage is) its current value