ProShares Short VIX Short Term Futures ETF (SVXY)

[Toofuzzy]

Hi lifter and Down

Does this make sence.

I supose I can aford to buy 1000 sh SVXY

So I might buy 500 shares and sell 5 $90 calls for Oct 3 taking in lets say $1.50 per share.
At the same time I can sell 5 $80 puts for Oct 3 taking in lets say $1.00

So I am not afraid of it being called. That is only a gain. $5.50 x 500 sh = $3,500 a nice gain for two weeks.

Of course I can take on much less risk and do 200 sh and 2 contracts for possible gain of $1,100 every two weeks. Still enough to be worthwhile and something I might even be able to afford within my Roth IRA account. Much better tax wise.

The risk is that the vix spikes and SVXY crashes back to lets exagerate and say $70.00.
My break even is basically $85 on the orriginal shares and $80 on the new shares

So at that point I can try and sell 5 calls for $80 and just wait and repeat till the 500 shares are called away, maybe even raising the call price gradually, Or I can just wait till the price goes up and then sell 5 calls.

After the 500 shares are called away I would go back to selling just slightly out of the money puts and calls.

Any thoughts?

Any thoughts on how to deal with an eventual vix spike (30, 40, or God forbid 90 again) and SVXY crash. The market has been going up so long a pullback has to happen eventually. I would hate to lose all my gains from a few months in a few weeks.

Toofuzzy