It sounds like the premium is simply built into the price of the contract. Talk to lifter or someone here who actually trades options and on a regular basis. That sounds like an excellent plan - just give your self a long enough time horizon and it should work out and work out well. Again, talk to an options trader here for further details on the premiums....
By your question it is obvious that you should NOT be trading options on this security.
You don't even have a basic understanding of options and you are picking the riskiest product to trade options.
You are looking at trading a derivative ( option) on a derivative (SVXY ) of a derivative ( vix ) of a derivative ( spy ) of a derivative ( a basket of individual stocks ) which are a derivative of individual companies.
Can anything possibly go wrong with this? Or your lack of understanding?
Start with a basic options book and read it a few times.
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