SVOL certainly passed the test of an explosive VIX on Aug 5 -- great showing. With respect to whether it would drift down over time with sustained high volatility (as one sees before, during, and exiting a recession) mitigating that might be why Simplified recently replaced a lot of the treasury holdings in SVOL with AGGH (in your chart from 2022 SVOL held exclusively treasuries as ballast) . I wasn't crazy about that change until I reflected on the events of the last 10 days of the high VIX and realized that AGGH will defend the NAV (and therefore the SVOL price) and support a rebound substantially better than treasuries in a sustained period of high volatility. Simplified's team deserves applause for making a truly fascinating product.
@@aydinghajar4087 AGGH is a hedged and covered call ETF that holds AGG, which contains about 1,000 corporate bonds (mostly AAA and BBB, some lower traunches) from around the world. This is a hugely diversified bond basket -- no single bond is over 1% of AGG's holdings. This insulates AGG more from whatever US market circumstances are causing the high VIX. In addition, when circumstances arrive that cause extreme equity volatility (say, world events, or some major calamity) they can also roil US treasuries so the diversification in AGG (and thus AGGH) helps on that front.. Lastly, a large percentage of the AGG bonds are fixed rate, adding stability to the highly diversified AGG. I can't recall offhand the how many, but it's a lot. Holding straight treasuries (and SVOL does still hold a lot) doesn't offer the hedging and diversification that AGGH does. Mind you, I think SVOL should hold treasuries too (and it does). But I can see why simplified designed it this way. That's a smart team over there. If you hold SVOL and have a stop loss of, say, ~12% you could further mitigate downside risks. SVOL is a genuinely fascinating beast..
I was also very interested to see how SVOL would handle a high VIX environment and was super impressed to see how well it held up. I've enjoyed your coverage of this stock along the way.
*I had problem comprehending trading in general. I tried watching other RUclips trading channels, but they made the concepts more complicated. I was almost giving up until when i discovered content and explain everything in detail. The videos are easy to follow*
I've been making a lot of looses trying to make profit trading. I thought trading on a demo account is just like trading the real market. Can anyone help me out or at least advise me on what to do?
Trading on a demo account can definitely feel similar to the real market, but there are some differences. It's important to remember that trading involves risks and it's normal to face looses sometimes. One piece of advice is to start small and gradually increase your investments as you gain more experience and confidence. It might also be helpful to seek guidance from experienced traders or do some research on different trading strategies
The first step in every successful investment is to establish your goals and risk tolerance, a task best undertaken with the assistance of financial advisor.
LANNA,GEORGE understanding of market indicators is impressive. She knows exactly when to enter and exit trades for maximum profit. her siignals are top notch
Excellent ETF! I first bought it 4 in a half months ago and most of it is back. I also was able to buy more of it set buy limit to $20 and got it closer to $19😃! No Worries Now!😂.. Thank you, Miss Vicky. You are my SVOL Girl. And my JEPI and JEPQ Girl😄
In my primary portfolio I got in SVOL on april 1 and added to it a couple more times. I now have 2600 shares. I am down %3 or $1796 in capital gains, but I have made $2497 in yield bring +$700 over all. I am hoping it will regain its NAV soon but I am very happy so far as its a very nice monthly income source for me in my pending retirement.
Say 2600 shares x around 21/share is 54600. You are saying $700/54600=1.28% return in 4 months or about a 4% annualized return is good? Treasury Products pay more than that. Please let me know if I am missing something. I don't mean to come across as rude. I just want to understand as I am also looking into this product.
@@theworkinginvestor I'm also looking at SVOL, he said he made $2497+$700 = $3197 in 4 months. $3197 / 4 months = $799.25 / month since he acquired is what I'm coming up with. Would like to see more performance data to make a decision but good to know so far.
My SVOL had a large drop but rebounded swimmingly. Its rebound was so solid that SVOL recouped its initial loss and was currently higher than before the dip. WOW!! I have a new favorite High Yielder to buy moving forward!
I've been waiting for this too. One bad day for SVOL, but it bounced right back. I sold some puts hoping that the ETF would be put to me but SVOL went up. I'm going to sell more puts when it goes down again.
I have held 4500 shares of SVOL for quite some time. When it dropped to 19 and change per share I got on the phone and contacted two of the men that I mentor and encouraged them to buy it inside of their retirement accounts as I have. What I especially appreciate about the fund managers is their agility in adjusting to market conditions. My intent is to park cash in SVOL. It has done a really good job of generating a really good portion of my RMDS.
I did some panic selling (aka predetermined stopp-loss) but my position wasn't huge. I am curious how SVIX, a 1x leveraged fund will recover. For SVOL (0.2x leverage), NAV is unaffected? However, calling SVOL now with two VIX tests (light and moderate) recession proof could be foolish, if VIX stays a months over 20 and SVOL fully recovers, then I am fully convinced.
@@marcohandmann4843 It may not be recession proof however, unlike any of the other income funds I have held, no matter what the market conditions they rarely deviate from .30 per share per month.
Thanks Vik! I was hoping you would do a video on this. I really wanted to buy the dip, but I also wanted to see how it would perform. I’m ready for the next dip.
Thank you Viktoria. I'd appreciate your insights on the following. According to SVOL’s Section 19(a) filings, a significant portion of each month's distribution appears to consist of ROC. Is this due to their options strategies not fitting neatly into traditional categories like interest or dividends, leading to the distributions being classified as ROC, or the result of insufficient earnings to cover the dividend?
Time 9:10 - I believe you mean "vega" Definition- Vega is an option Greek that measures how much an option's price changes in response to a 1% change in the implied volatility of the underlying asset. Vega is important to study for options traders because volatility is a major factor that affects an option's value. I also believe it's "weighted vega" that causes closer term option prices to swing more than longer term options
Today SVOL closed at 21.94 with a VIX still above 20 ! I bought it about 7 month ago for about 22.50 and I already got 2.10 per share in dividends. It seems with a VIX back to the 15 range SVOL can recover all its loss from last monday. And remember.........a VIX spike to 65 doesn't happen every year. I think this was the real test for SVOL.
If I could put 25% of my total wealth into svol both my wife and I could retire but I won't do that because that would be a breach of good investment discipline. However I have to fight the temptation every day.
Hello, does anyone know what is the interest of selling the future vix and buying call options (purchase of synthetic put) rather than directly buying puts (fewer transactions to have the same position).
I tried to buy at $19.50 but could not access my brokerage account. This outage impacted several of the major brokerages. Ended up buying @ $20.63. Bought the next day ~$20.50
You do a great job of explaining how this ETF work. I only have a small position in it ( < 500 shares) but I have been extremely pleased with how it is handling the market ups and downs.
This is not a stock investment. It does not correlate strongly with stocks, which is entirely the point. The volatility spike that just happened was something we've been waiting to see, because last time this happened it wiped out one of the funds that employed a similar strategy. The bottom line is that you end up getting 10% to 15% performance over time if you DRIP SVOL, but with lower volatility than stocks and low correlation to the stock market, which makes your overall portfolio performance more predictable. 10% to 20% of your portfolio in SVOL max though. It is a derivative-based active fund, and I am sure there are still risks we aren't seeing.
VIX futures are not in contango right now. The front month is higher than the second, which is lower than the third, which again is higher that the 4th which is also higher than the 5th. Also if you want something that loses less than the major indexes in a down market, there are plenty. I trust you have heard beta. There are even negative beta stocks.
You messed up greeks very much. Minor issue - having QQQ at 451.04 you took 452 as AT the money which is OUT the money - 451 is much closer and should be taking as ATM, for 2 months you took 455 which is even more further OTM. You can't compare delta of 452 and 455 too precise cause strike is different, plus your deltas for October IS WRONG. At that moment Aug 16th 452 delta was 0.49 and Oct 18th 455 was 0.48 ( not .52 which is NONSENSE for out of money - check your data source). Maybe you actually took 450 which delta was .52 at that moment showing in video 455. But the main issue - your explanation was misleading because the price difference for the same strike and almost the same delta(difference in delta is impacted by different Gamma) is because of Theta and Vega, not delta.
The share value is flat to erode over time. It eroded much more right at the beginning, and they have adjusted the strategy. It does not appear to erode much now, but it does erode. So you have to look at the net when you DRIP it. It looks like a really predictable 15% overall.
@@jodimorrison as Canadian holding USA ETFs are great but we have 15% taxes holding. All I can say therefore I'm trying to hold Canadian ETFs. It's not professional advice only friendly opinion. SVOL very unique but I'm not shorting the stocks. I'm not daily trader. The market in the long run is higher no doubt.
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Thank you Viktoria for answering the questions from your subscribers concerning SVOL.
SVOL certainly passed the test of an explosive VIX on Aug 5 -- great showing. With respect to whether it would drift down over time with sustained high volatility (as one sees before, during, and exiting a recession) mitigating that might be why Simplified recently replaced a lot of the treasury holdings in SVOL with AGGH (in your chart from 2022 SVOL held exclusively treasuries as ballast) . I wasn't crazy about that change until I reflected on the events of the last 10 days of the high VIX and realized that AGGH will defend the NAV (and therefore the SVOL price) and support a rebound substantially better than treasuries in a sustained period of high volatility. Simplified's team deserves applause for making a truly fascinating product.
Why would AGGH protect NAV better than treasuries?
@@aydinghajar4087 AGGH is a hedged and covered call ETF that holds AGG, which contains about 1,000 corporate bonds (mostly AAA and BBB, some lower traunches) from around the world. This is a hugely diversified bond basket -- no single bond is over 1% of AGG's holdings. This insulates AGG more from whatever US market circumstances are causing the high VIX. In addition, when circumstances arrive that cause extreme equity volatility (say, world events, or some major calamity) they can also roil US treasuries so the diversification in AGG (and thus AGGH) helps on that front.. Lastly, a large percentage of the AGG bonds are fixed rate, adding stability to the highly diversified AGG. I can't recall offhand the how many, but it's a lot. Holding straight treasuries (and SVOL does still hold a lot) doesn't offer the hedging and diversification that AGGH does. Mind you, I think SVOL should hold treasuries too (and it does). But I can see why simplified designed it this way. That's a smart team over there. If you hold SVOL and have a stop loss of, say, ~12% you could further mitigate downside risks. SVOL is a genuinely fascinating beast..
I was also very interested to see how SVOL would handle a high VIX environment and was super impressed to see how well it held up. I've enjoyed your coverage of this stock along the way.
*I had problem comprehending trading in general. I tried watching other RUclips trading channels, but they made the concepts more complicated. I was almost giving up until when i discovered content and explain everything in detail. The videos are easy to follow*
I've been making a lot of looses trying to make profit trading. I thought trading on a demo account is just like trading the real market. Can anyone help me out or at least advise me on what to do?
Trading on a demo account can definitely feel similar to the real market, but there are some differences. It's important to remember that trading involves risks and it's normal to face looses sometimes. One piece of advice is to start small and gradually increase your investments as you gain more experience and confidence. It might also be helpful to seek guidance from experienced traders or do some research on different trading strategies
The first step in every successful investment is to establish your goals and risk tolerance, a task best undertaken with the assistance of financial advisor.
LANNA,GEORGE understanding of market indicators is impressive. She knows exactly when to enter and exit trades for maximum profit. her siignals are top notch
This is really helpful for my situation, do you know how much is ok for a start, how can i get to her please
Brilliant insight, Viktoriya! No other investor vloggers drill down on the analytics and logistics like you.
Excellent ETF! I first bought it 4 in a half months ago and most of it is back. I also was able to buy more of it set buy limit to $20 and got it closer to $19😃! No Worries Now!😂.. Thank you, Miss Vicky. You are my SVOL Girl. And my JEPI and JEPQ Girl😄
In my primary portfolio I got in SVOL on april 1 and added to it a couple more times. I now have 2600 shares. I am down %3 or $1796 in capital gains, but I have made $2497 in yield bring +$700 over all. I am hoping it will regain its NAV soon but I am very happy so far as its a very nice monthly income source for me in my pending retirement.
Say 2600 shares x around 21/share is 54600. You are saying $700/54600=1.28% return in 4 months or about a 4% annualized return is good? Treasury Products pay more than that. Please let me know if I am missing something. I don't mean to come across as rude. I just want to understand as I am also looking into this product.
@@theworkinginvestor I'm also looking at SVOL, he said he made $2497+$700 = $3197 in 4 months. $3197 / 4 months = $799.25 / month since he acquired is what I'm coming up with. Would like to see more performance data to make a decision but good to know so far.
You are the best, thank you for your explanation, really informative👍🏻
My SVOL had a large drop but rebounded swimmingly. Its rebound was so solid that SVOL recouped its initial loss and was currently higher than before the dip. WOW!! I have a new favorite High Yielder to buy moving forward!
Great video as always, thanks!
I have 2 questions here:
1) What has to happen for svol to go bankrupt?
2) What has to happen for the high payout to decrease or even fall to zero?
I've been waiting for this too. One bad day for SVOL, but it bounced right back. I sold some puts hoping that the ETF would be put to me but SVOL went up. I'm going to sell more puts when it goes down again.
I have held 4500 shares of SVOL for quite some time. When it dropped to 19 and change per share I got on the phone and contacted two of the men that I mentor and encouraged them to buy it inside of their retirement accounts as I have. What I especially appreciate about the fund managers is their agility in adjusting to market conditions. My intent is to park cash in SVOL. It has done a really good job of generating a really good portion of my RMDS.
I did some panic selling (aka predetermined stopp-loss) but my position wasn't huge. I am curious how SVIX, a 1x leveraged fund will recover. For SVOL (0.2x leverage), NAV is unaffected? However, calling SVOL now with two VIX tests (light and moderate) recession proof could be foolish, if VIX stays a months over 20 and SVOL fully recovers, then I am fully convinced.
@@marcohandmann4843 It may not be recession proof however, unlike any of the other income funds I have held, no matter what the market conditions they rarely deviate from .30 per share per month.
Bloody scammer
Thanks Vik! I was hoping you would do a video on this. I really wanted to buy the dip, but I also wanted to see how it would perform. I’m ready for the next dip.
Excellent video thanks. In my opinion SVOL passed the volmagedon test with flying colors.
So in short collect premiums sellputs below price while price goes up and never get assigned?
Thank you Viktoria. I'd appreciate your insights on the following. According to SVOL’s Section 19(a) filings, a significant portion of each month's distribution appears to consist of ROC. Is this due to their options strategies not fitting neatly into traditional categories like interest or dividends, leading to the distributions being classified as ROC, or the result of insufficient earnings to cover the dividend?
Love SVOL. Great video
Excellent presentation 💯💯💯
Time 9:10 - I believe you mean "vega"
Definition- Vega is an option Greek that measures how much an option's price changes in response to a 1% change in the implied volatility of the underlying asset. Vega is important to study for options traders because volatility is a major factor that affects an option's value.
I also believe it's "weighted vega" that causes closer term option prices to swing more than longer term options
Cheers this info is amazing, thanks , thanks again ❤
Thank you Victoria!
Thanks for you work -- I understand this now 🌝
I have 375 shares of SVOL (purchased in May) and thinking of doubling my investment.
Today SVOL closed at 21.94 with a VIX still above 20 ! I bought it about 7 month ago for about 22.50 and I already got 2.10 per share in dividends. It seems with a VIX back to the 15 range SVOL can recover all its loss from last monday. And remember.........a VIX spike to 65 doesn't happen every year. I think this was the real test for SVOL.
165😉
If I could put 25% of my total wealth into svol both my wife and I could retire but I won't do that because that would be a breach of good investment discipline. However I have to fight the temptation every day.
Hello, does anyone know what is the interest of selling the future vix and buying call options (purchase of synthetic put) rather than directly buying puts (fewer transactions to have the same position).
Longer dated options have lower Gamma or the change in Delta. You can purchase or sale any delta on any time frame. Your welcome.
I was wondering when you were going to get around to this. Not bad performance for the crazy spike we had.
Loading up at $19.55,$20.33 on BLOODY MINDAY! WAHT A GIFT FROM MARKET!!!~
I tried to buy at $19.50 but could not access my brokerage account. This outage impacted several of the major brokerages. Ended up buying @ $20.63. Bought the next day ~$20.50
NVDA has recovered better...this yen carry trade drop isn't a good test.
We have not gone through a recession yet ...
You do a great job of explaining how this ETF work. I only have a small position in it ( < 500 shares) but I have been extremely pleased with how it is handling the market ups and downs.
In 2022 JP Morgan with high likelihood called for a recession in 2023 and into 24.
My SVOL lost over 19% on the crash date.
Next time I see the vix spike, I am piling in to SVOL. Look at the recovery.
She lost my following. She keeps pumping an ETF that was down twice as much as the index going past the 52 week low and the five-year low.
This is not a stock investment. It does not correlate strongly with stocks, which is entirely the point. The volatility spike that just happened was something we've been waiting to see, because last time this happened it wiped out one of the funds that employed a similar strategy. The bottom line is that you end up getting 10% to 15% performance over time if you DRIP SVOL, but with lower volatility than stocks and low correlation to the stock market, which makes your overall portfolio performance more predictable. 10% to 20% of your portfolio in SVOL max though. It is a derivative-based active fund, and I am sure there are still risks we aren't seeing.
@@JasonSmith80513 ok the VIX, but that wasn’t the point 😂
I liked the old outro. Much cuter.
My honest comment was erased ---interesting
ZIVB is much better.
if you like high divi look nowhere else but bcat and ecat
You're aware, of course, that most of their distributions have been Return of Capital?
Hasn't it been drastically eroding since 2022?
VIX futures are not in contango right now. The front month is higher than the second, which is lower than the third, which again is higher that the 4th which is also higher than the 5th. Also if you want something that loses less than the major indexes in a down market, there are plenty. I trust you have heard beta. There are even negative beta stocks.
Finance men of culture we meet again.
Thanks for explaining options 😢but I have absolutely no interest in Learning about options. Posssible to buy more of SVOL.
Yes JEPI
actually options have been the equalizer. i am glad i found out about options. buying and holding is for rookies.
You messed up greeks very much. Minor issue - having QQQ at 451.04 you took 452 as AT the money which is OUT the money - 451 is much closer and should be taking as ATM, for 2 months you took 455 which is even more further OTM. You can't compare delta of 452 and 455 too precise cause strike is different, plus your deltas for October IS WRONG. At that moment Aug 16th 452 delta was 0.49 and Oct 18th 455 was 0.48 ( not .52 which is NONSENSE for out of money - check your data source). Maybe you actually took 450 which delta was .52 at that moment showing in video 455. But the main issue - your explanation was misleading because the price difference for the same strike and almost the same delta(difference in delta is impacted by different Gamma) is because of Theta and Vega, not delta.
😳
The script writer has to tighten up a little bit. 😁
The share value is flat to erode over time. It eroded much more right at the beginning, and they have adjusted the strategy. It does not appear to erode much now, but it does erode. So you have to look at the net when you DRIP it. It looks like a really predictable 15% overall.
As Canadians we have better ETFs to buy. Good luck
Suggestions?
To an equivalent in Canada ?
@@jodimorrison as Canadian holding USA ETFs are great but we have 15% taxes holding. All I can say therefore I'm trying to hold Canadian ETFs. It's not professional advice only friendly opinion. SVOL very unique but I'm not shorting the stocks. I'm not daily trader. The market in the long run is higher no doubt.