Reddit has become so bullish and VIX has reached a low. Given this I am thinking of this UVXY call spread idea. UVXY is 1.5x VIX. I feel UVXY will come to the 50 SMA of 16 if there is some catalyst for fear (unemployment numbers, low AI adoption, higher CPI etc).
Spread makes theta positive. Since UVXY is 1.5x VIX change any shock can get amplified. (Ofcourse market can keep roaring higher as we are in 'golden age' and suddenly the 'hottest' country. 😉 Full position loss is possible hence limiting to $ 1500)
Posted by Plane-Isopod-7361