If you won the lottery, what would be your ONE crazy splurge?

[slow99]

I'd dump shitloads into whatever dfwm suggested.

[bcoop]

I'd dump shitloads into whatever dfwm suggested.

CSHD. You make gazzillions

[01vnms4v]

youre gonna keep 20m in a checking account?

Hell no, just play money here and there. Most of the money would be in different accounts to be safe

[Z06killinsbf]

I would invest in one of those deals were I put in a $1k and get back $5k in no time. But I would go all in like Vegas. Go big or go home!!

[Slowhand]

Pour it all into TVIX, close my eyes for 48 hours, and come back and see whether I had $0 or $8 quadrillion.

[STROKD]

I'd buy the custom speed yacht from the movie "The Island" that Ewan's dying architect persona supposedly designed.

http://www.google.com/m/search?tbm=isch&source=mog&gl=us&tab=wi&q=yacht%20from%20the%20movie%20The%20Island%3F&sa=N#i=0

[Forever_frost]

Titan 2 missile silo

[slow99]

Pour it all into TVIX, close my eyes for 48 hours, and come back and see whether I had $0 or $8 quadrillion.

Is that the fucking levered vix? Jesus christ...

Well, it wouldn't be zero, but it isn't like the vix needs leverage. I have been making a killing recently just buying volatility when it spikes down, hold it, sell it when it spikes up (so much shit ahead w/earnings, Europe, debt ceilings, etc).

[Sleeper]

100 acres far away from sociecty with Solor Enegry & Windmill Enegry & have a fresh well dug with Farm equipment & pretty much anything I could think of to live off my land with just ME & MY LOVED ONES

This can be done.

[slow99]

What's this? Jody is actually posting something he owns?

I certainly do not recommend anybody making an investment decision based on a post of mine. I also did not say which direction I own those options.

[YALE]

I would buy a cool old brick warehouse and have my stepdad clean it up (he's an architect) and turn it into a house, then fill it with toys, and rotate them when I got bored. I'd probably just invest the bulk of it, open the mail, and travel as often and as simply as possible.

[Geor!]

A sweat shop! Producing trains!! $$$$$$$$$$CHOOOOO CHOOOOOO$$$$$$$$

[Geor!]

I would but a bottle of glenlivet 70 year old single malt.




For $20,000 and then drink.

That is probably the coolest bottle i have seen.

[Slowhand]

Is that the fucking levered vix? Jesus christ...

Well, it wouldn't be zero, but it isn't like the vix needs leverage. I have been making a killing recently just buying volatility when it spikes down, hold it, sell it when it spikes up (so much shit ahead w/earnings, Europe, debt ceilings, etc).

That's the one, and it recently just lost like 300% of its value over the course of a few days if I'm not mistaken. All of the money I have in the market is in ETFs right now, most of it in floating in and out of volatility indexes. I don't know what the fuck I'm doing, but I'm making pretty decent returns; I keep reading about how you have to play the game with shorts and puts and all kinds of wild shit beyond my pay-grade with the VIX, but I just keep buying in dips and setting stop orders at a reasonable gain.

[slow99]

That's the one, and it recently just lost like 300% of its value over the course of a few days if I'm not mistaken. All of the money I have in the market is in ETFs right now, most of it in floating in and out of volatility indexes. I don't know what the fuck I'm doing, but I'm making pretty decent returns; I keep reading about how you have to play the game with shorts and puts and all kinds of wild shit beyond my pay-grade with the VIX, but I just keep buying in dips and setting stop orders at a reasonable gain.

You can't "buy" or "sell" the actual VIX because it's just a number derived from a mathematical formula. Actually, being an accountant, you're no doubt familiar with the Black-Scholes option pricing model. The vix is actually the standard deviation backed out of the Black-Scholes model. It represents the price the market is paying for option insurance.

Due to its properties, you can only play it via options on the .vix, or an instrument like the VXX - a 60 day forward on the .vix. I prefer the VXX ... but you have to understand contango, negative roll-yield, and the way it reacts to the .vix b/c it's a futures contract. Regardless, you want the shortest term expiration you can get - VXX is shortest I've seen - to minimize negative roll yield. You'll get the roll yield problem no matter how you play it.

Vix represents the annualized implied price movement on the S&P over the next 30 days. Since we're dealing with standard deviations and not variances, you divide the vix by the square root of 12 to get the implied S&P movement (either up or down) over the next 30 days.

Vix of 15 (divide 15 by the sqrt of 12), implies a 30 day S&P500 movement (to the down or up side) of 4.3%.