Considering buying a 3 week put to the UVXY ($55 strike) it spiked 50% this week in the past 5 years it only spiked higher than this twice; when shut down first hit (x10) and in 2018 (66%) then it went down within a week.

Y’all think this makes sense?

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If you can get VIX options I would use that instead. Brokers often allow VIX options even if you can’t trade the underlying.

UVXY is just a funky asset.

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This is a common strategy, a lot of people play these spikes. Sometimes though, with high spikes in the VIX you are paying higher premiums in UVXY options and a decrease in VIX/UVXY will cause premiums to drop as well, thereby reducing your potential profits. A way to eliminate the vega impact is to do spreads. But, overall the strategy is pretty consistent.

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This but BEFORE it takes off. Now you are just chasing.

Cant really project the calls much, but shouldn’t be rocket science to predict the puts. Only concern would be the premiums.

Made 100% return in two days
Thanks guys

-Bought 2 week and 3 week options. If had spent 10% of the capital I invested in May 14 puts I would’ve made 150%. On the other hand if they ended worthless ignoring decay I would’ve made 90%. So I know what to do next time around

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