VIX FUTURES: MacroDoζer Summer Special 5/5 (+62%)

We Are Closing Our Last Summer Special Trade

Sep 06, 2022

“Our income grows as we grow.” Team MacroDoζer.1
We saved the best for last; volatility returned.
A technical retrace came true as if witchcraft worked.
It was an excellent call to stick to the ETF.
Contango drag, short put credit spread: We lived the summer to the fullest.

1. Recap Situation

We got a bit political in Summer Special 5/5. However, we also believed that the market was due for a correction and felt volatility might come back.

Check out the original BrainDoζer below.

MacroDoζer

UVXY: MacroDoζer Summer Special 5/5

Executive Summary “Your income can only grow to the extent that you do.” UVXY Volatility. Did we save the best for last, with more volatility to come? A technical retrace is due, more likely than the existence of witchcraft. We stick to the ETF; the default risk of ETNs is too real for us…

3 years ago · MacroDoζer

2. Why Now?

The S&P 500 has retraced as we assumed. No surprises.

S&P 500 Technical Retrace - Now or Later — *MacroDo*ζ*er,* TradingView

S&P volatility (VIX) usually spikes when the S&P 500 retraces. It all played out like clockwork. UVXY held up strong despite contango drag, as we anticipated.

UVXY: S&P Volatility Spike — *MacroDo*ζ*er,* TradingView

3. Trade Execution

Trade Entry - Aug 5, 2022

Total: 1.15 Credit.

UVXY: Opening Pay-Out Graph - Short Put Credit Spread — *MacroDo*ζ*er,* tastyworks

Trade Exit - Sep 6, 2022

Total: 0.62 Debit.

UVXY: Closing Pay-Out Graph - Long Debit Spread — *MacroDo*ζ*er,* tastyworks

The absolute return of this trade is

Text within this block will maintain its original spacing when published

1.15 - 0.62 = 0.53

The capital used was 0.85, resulting in a return on capital of