“Are you aware of why? Hint - it wasn’t because a lot of investors saw cheap stocks and decided to jump back in. “
If your group of informed investors did not see it that way, that was their fault. Mine jumped back in early yesterday morning, before any news or comments by anyone, because they rightly saw the previous week’s decline was based on panic, not better information.
I've also been long on /6J since the collapse. Go do some calculations there. ;-)
And for the record - I also went into GLD calls on Friday. I knew that Gold was falling only because a bunch of people were having to liquidate their gold and silver to avoid margin calls. I think that storm is over (gold crash). It bounced off the 50 day mov-avg and I think that’s the support. I will hang on to those calls and do very well
Now - in full transparency - I am currently down (as of right this minute) $6,150 in /VXV20 (October -VIX futures). But - I was down about $20K yesterday and I added to the position and put a stop loss in for about $30K. The long term volatilities are great until you get some crazy events like this. I currently have 29 short contracts - and if it continues to go down - I will do very well. I would like to see a mini bull rally for the rest of the week. My long term puts are for the 15 May and 19 Jun expiration dates. So - I think I will be OK.