lowtrade

[lowtrade]

Be aware price level determines average gain level. The lower the price, the higher the gain.

Think about the actual VIX's. Because price is lower. Gain is actually larger then the (2x/3x) (? Ultra) UVXY.

I learned to look for this years ago, trading FWLT Foster Wheeler. They had a tradable warrant FWLTZ, which was priced in the $2 dollar range and their common stock was in the $20 range. It tracked exactly like your VIX EFT's tracks the VIX. I stopped trading FWLT's common and traded FWLT's z warrant and made larger gains on every trade.

UVXY had -4.13% and VIX -4.35% Friday. Smaller difference then what I got on FWLT. But FWLT warrants were 10 times cheaper and VIX is only 2 times cheaper then UXVY.

You still end up making a little larger win/loss on each trade, at the lower price. In VIX/UXVY case, you'd at least cover the trade fees on a win.

Keep price level in mind if there is a trading alternative that tracks exactly. Trade the less expensive one.