Last week we started a $1500 demonstration portfolio using SVXY, and ETP that is destined to move higher over the long run because of the way it is constructed (selling VIX higher-priced futures each day and buying at the spot price of VIX, a condition called contango which exists in about 90% of days).
Today we bought back an in-the-money expiring put that we had sold last week and rolled it over to next week.
I hope you find this ongoing demonstration to be a simple way to learn a whole lot about trading options.
Ongoing Spread SVXY Strategy – Week 2
Last week, we used the following trade to . . .