What to do, what to do…
Did you see last week when I penned an article about my merits for owning UVXY? I thought the idea strange but simple; volatility could be underestimated here. So I watched it trade for two days, and bought it when it turned up. That was last Wednesday. The next three trading days went like this:
Tick, tick, BOOM!
The position knifed lower today and is down 15% since my entry. But am I worried? Should I be worried? Absolutely not good sir, that’s no way to speculate! Had not I known the nature of this freaky little instrument I would not have positioned myself in the name. And of course risk management makes my job a lot easier. So here’s how the rest of this trade will play out. I will enact the following steps and not deviate from them:
If UVXY stabilizes and some buyers come back in, I will double my position.
I will only double down on a green close or if a green close seems imminent during the trading day.
I will scale my double down completely off if/when we trade at the original entry ($25.44).
I will accept being wrong and sell this shit instrument if/when the VXX closes below $19.33
A reassessment of the trade will occur upon scaling off the double down.
See? Simple. If you think you’re going to catch knifes like a fucking sideshow clown and not bleed out from time to time you’re more delusional than cockboy over in Cali with his “rush hour whack off” fiasco.
Of important note: The above trade will not DEFINE me guy, you one star rating internet prick cock sucker hobo fucker (I had to get all that out as it’s frowned upon in the tweet streams). The total risk involved to my portfolio is about 1.5%. Aka a fucking hedge isn’t going to derail my otherwise fantastically well year.
Finally, I’m still long and with the help of others on this site I’m banking money fast (and B.M.F. on the weekend) in my newest positions DRYS and YELP(s). On Dasher, on Prancer! Okay nevermind they’re selling off into the close ROFL.
One last thing since it’s Moday, my current holdings are as follows (by weight): AWK, HFC, FR, WFM, LNKD, F, NIB, DVAX, GSVC, DRYS, UVXY
The degenerate account is 100% long YELP.
May your days and weeks continue on swimmingly.