ProShares Trust Ultra VIX Short Term Futures ETF (UVXY)

[DowDeva]

KB,

I'm still not following you.. I do elaborate delta hedging, but have a basic good understanding of options/stocks, plus the Greeks.

I think I'm not asking the question the right way. Let me try it like this:

You purchased puts on XYZ. They expire worthless because the evil MM's ran it up before the bell. I know, it's happened to me.

So, you watched and in the after market shorted the equivalent amont of shares of the stock after the stock ran up.

I think what I'm trying to ask here is that if they ran the stock back up after the bell on Friday, and you shorted at the afterhours high (which might also have been the HOD), the stock would have had to go back down AGAIN for you even to break even, let alone make any money on your expired puts.

So did it? Did the stock gap down on Monday?

Because if you shorted after the bell, after they ran the stock up and the stock continued go rally, gapping up on Monday (which has also happened to me), it seems that you would have lost even more money.

I could see this scenario if you shorted the stock at the time your long puts were in the money, but otherwise, I'm still clueless.

Thanks for your previous reply, and I hope I'm not testing your patience.

~D