I'll be honest - I am skeptical SVXY will hit $130 anytime in the near future. While I do agree that yes, at some point in time, SVXY may hit that level - but for SVXY to hit $130 now (roughly a 30% increase) there would have to be no correction in the market for the next 3 months, assuming SVXY gains about 14.5% month over month.
On Jan. 2, SVXY was 73.46.
Feb.1 = 86.73
March 1 = 77.90
April 1 = 91.05
The returns for each month were:
1/1 - 2/1 32.5%
2/1 - 3/1 (5.64%)
This means the average return per month over this 3 month period was about 14.5%.
Assuming the same rate of return of 14.5% (massive assumption here) on May 1, SVXY should be 104.34, and June 1, SVXY should be 119.57 and July 1 should be 137.
I find this a highly unlikely scenario, as the first the months of this year have been extremely bullish (to say the least) with hardly a correction. Do you believe there wil be no major correction over the next 3 months? Maybe you do believe that - hence the post. I do not believe so. Therefore, I do not see SVXY hitting 130-135 by June in my humble opinion.
it won't stop at $130 either. check back in a few years, this could be $1000 accounting for any splits in between .. the tail wind of contango helps this .. cautuon - protect any short term volatility spikes with VIX call options