Forum Replies Created
- Posts
After signing in, I can’t find the recent post about what to do with ZIV after it was listed at 80% going into Feb 2018. As LI has mentioned in a white paper, it is BEST to check vixcentral.com daily and make sure the curve is in a nice contango. If it gets funky for a couple of days or into a sever backwardation, then it is time to get out of ZIV. Period. Only re-enter ZIV when things settle down or when LI says to get back into ZIV AND the vixcentral curve has a nice positive slope. In this case, everyone following MYRS should have been out of ZIV not later than sometime on Feb 5, when the vixcentral curve turned severely negative. The high, low, close for ZIV on 2/5/18 was 86.15, 74.15, and 74.54. I got out of ZIV a few trading days earlier. My recommendation: If you are in the ZIV you have to be aware of the markets undercurrent, the VIX, and the VIX curve. If you do not have internet access for several days (out of the country, cruise, remote area) then it is probably best to either close out ZIV positions or lighten up to 50%, or less. Hope this helps…in the future.
The change in MYRS today (6-16-17) was both dramatic and a shock. A question comes to mind: Won’t these dramatic shifts on a less than monthly basis run in to accounting problems with taxable accounts due to the wash sale rules? If potentially every 15 days you could be asked to buy, sell, buy, sell, etc, shares it seems like pretty soon you would have wash sale complications. Has anyone ever thought about this point and, if so, how do they handle it? I believe in this service (and checking vix central on a daily basis), but I can’t get my head around the potential tax complications. Comments please.
