A.I.M. Users Bulletin Board

[ls7550]

Hi J.

My intent was that early morning volatility (buying or selling) might have been high yesterday a.m. enough to push SVXY down to the 11.00 price I was targeting. I was happy to load in at that price and just hold for the rest of the year, or exit if the gains were enough to warrant closing i.e. anticipating that volatility might relatively decline over the mid term (next year or so).

More a case for me of being a conservative 30/70 stock/bond type asset allocation for those funds i.e. around 6% in SVXY which is like a 5x in some respects, 94% in 'cash'. On the basis that if SVXY lost all and cash earned 2.1% then -4% for the year; Or if SVXY doubled and cash earned 2.1% then +8% for the year; But where the prospects for the latter is perhaps greater than the former by year end. Along with other potential plays during the year to potentially bolster 'cash' rewards as and when they might present.

As it stood, yesterday saw relatively low volatility and as there's a lot of backwardisation SVXY had appeal. Looks like today that's been more realigned and my limit order would likely have been filled. New EU regulations as of January this year however have prevented me from buying.