Volatility

I said I would update earlier but I wanted to let the idea roll for a while longer. 

With that I think taking a long VIX positon, as a mark beyond a form of hedging, is a losing bet.

The futures structure just doesn’t work. 

The indices are upwardly biased. A long VIX position is incredibly time sensitive. Contango and roll yield (to the short side) eat up the long VIX position. 

On the other hand, the short side is pretty intriguing. 

I’ll write about that in the coming days. It’s far too involved to tap out on a phone. 

I closed the UVXY trade. Even though I made money, it wasn’t the way I anticipated. Still long commodities plays and Gilead. Under armour took a beating and is getting close to being worth a look. Twitter is down huge this morning but still no love from me there. Started evaluating Chuys this morning. 

Mostly my evaluation focuses more and more on small caps. Low or nonexistent sell side converage and little or no idea pressure. 

There is space for a activist micro-medium cap fund. 

Best to your investing, 

Daniel 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s