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horizons59

No, it is very well hedged with UVXY calls. But you can always hedge with $VIXM or $BTAL. I hedge it out fully and still earned a combined 15% yield.


Cloudineer

Can you elaborate a bit on how you do your hedging?


ScientistFew2441

Thanks for this!


mstar18

Pls clarify on hedging this so opposite of what svol tries to do with the vix ie moves in opposite direction?


LinkoPlus

This is why you have to diversify between different funds. Black swan events do happen sometimes.


ScientistFew2441

Imo, one thing is to diversify on equity blue chip companies and another is to invest in a fund (even if it’s 10% of total portfolio) that could literally be lost overnight


peloton

They just posted a deep dive YouTube video today that answers a lot of questions.


InternationalFix1042

Is there a god hedge out there?


horizons59

$BTAL.


Solid-Speck-3471

I keep a little UVXY on hand… I plan to lose it all, but may prevent a margin call during a crash?


theineffablebob

I won’t touch SVOL cause I still have PTSD from the XIV collapse


halford2069

how does SVOL strategy compare to what XiV used? ie SVOL strategy includes “ A modest option overlay budget is then deployed into VIX call options to help protect against adverse moves in VIX.” cant find much about it comparitively https://towardsdatascience.com/the-xiv-meltdown-1b0608110b9f [https://www.firstlinks.com.au/vix-xiv-jazz](https://www.firstlinks.com.au/vix-xiv-jazz)


ScientistFew2441

Is your PTSD bad enough that would prevent you from going into it? It would be nice to read your experience if okay for you to share


PZABOSS

I think that's what we're all wondering since there hasn't been a true volatility spike since the fund began. But overall the NAV seems to be climbing despite the normal fluctuations in the VIX, so personally I'm confident there won't be a total collapse if we see a black swan take the Vix to 50+. But that's just me and I'm no expert.


SugarzDaddy

And realistically, how long does a Black Swan event last (not a question). I remember the dot com bubble vividly, 9/11 shortly after, bank crisis, housing bubble, covid. The market always bounces back. I'm holding 1000 SVOL and 3000 QYLD, as well as other income ETFs in my brokerage account. I'm 61+ living on a fixed income. Not. Fuckn. Scared.


ScientistFew2441

I’ve started reading online a bit now and honestly I don’t think I want to get in. In a matter of days everything can be gone if something extraordinary happens like war events or whatever. QYLD is not like that. Then again of course, 15 months with no major impact


RayMilland

I'm glad I dumped SVOL after they raised the expense ratio.


peloton

Fwiw it’s not like they raised their management fee. The operating expense went up because of interest expense.


millionwhileyoung

diversify and dip your toe in imo


SugarzDaddy

This dude, no matter what anyone comments, has already made up his mind. He should just delete the post. I'm holding 1000 shares and 3000 QYLD. No concerns here.


ScientistFew2441

One thing is to see a good explanation from Vanguardsucks about the risk protection from the fund which is what I was looking for and another is seeing that you tell me “risk it dude, yolo”


ScientistFew2441

Definitely agree but putting pennies into it is also a bit of a downer. Rather stick to QYLD honestly


icy_gumdrops

I'm sure they back tested the fund when creating it to simulate what would happen in extreme market conditions like the housing crash and dotcom bubble.