1Année·

Stupid Question:

Why cant this plan work in next 5 to 10 years?

Buy $3USL (+0,19 %) at current avg 50 price.

Hold till next crisis when prices traded for above 1000.

Get profits on the thousands percent.

I know it must sound a dumb question in many ways but...making my first steps here.

6 Commentaires

yieldhunter@randomdude

1Année

How do you know when the crisis is there?

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Voir toutes les 3 autres réponses

ImpressiveCard@growth_ninja_kixmn

1Année

Sorry for digging up old stuff, but I think this was meant to be posted on some kind of VIX short factor derivative (judging from other posts of the user). And yes, in a nutshell that's a viable strategy. If you time it well after the spike in volatility that comes with a drawback and get out at a good point. But for the points others have pointed out, it requires good timing and is a risky business. If the VIX happens to go up by one over your factor one day you essentially sit on a total loss. So you should employ proper risk management.

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ImpressiveCard@growth_ninja_kixmn

1Année

@growth_ninja_kixmn Ah sorry, I guess it was about going long, not short. By the long-term nature of the VIX what I wrote makes more sense to me (and is less risky). But the story is similar modulo sign. Doesn't need a single bad day, three "mildly" bad days in a row can essentially wipe out your position.

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