Moo friends who have read my previous articles know that I wrote four articles, two on the VIX, one on the erosion of leveraged and inverse ETFs, and one on options—all leaning towards theory and technical aspects. While the response was positive, I feel that sharing practical operational insights might resonate more with readers.
1. Decisively abandoning the SVIX ETF
Initially, when the VIX surged, I actually bought the SVIX ETF (from $12 all the way down to $10). However, considering the amount invested and the time cost (The main time cost involved waiting for the path and the VIX's Backwardation to pass; for specifics, refer to the knowledge points in the previously analyzed articles.), I decisively sold the ETF and switched to a few SVIX call option contracts. Due to the leverage structure of options, if SVIX rises from $12 to $14, the returns from buying SVIX call options would far exceed those from the SVIX ETF. Of course, the risks are also higher, making it suitable for high-risk, high-reward strategies.
2. Chose to buy a single-leg Call on SVIX.
Generally, many advanced options strategists do not recommend buying single-leg Calls. However, considering the differences between VIX and company stocks, I still used a single-leg Call as my operational tool.
The reasons are as follows:
1. The structure of SVIX differs from that of company stocks, making single-leg Calls/Puts more advantageous.
Traditional company stock options typically do not recommend single-leg Call operations because stock price fluctuations are constrained by fundamentals, with slower movements and...

In today’s volatile market, opinions fly fast and fierce. Investors and traders alike have their own reasons for adoring—or dissing—certain stocks.
As the asian sugarbabe that sell body to earn money to speculate the market, i m not interested with your tiny sugarcane. i want to tap your brain and know your thoughts.
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As an option writer/seller, we received a premium upon selling. We are effectively selling an 'insurance' to the buyer, with a promise that we will buy/sell based on the strike price. Our aims is to let the option expired worthless, out of money (away from strike price), upon expiration date. So, our buyer will not make claim on the 'insurance', and we get to keep the premium as profit.
Disclaimer: I am not a licensed financial advisor and I do n...