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ProShares Ultra VIX Short-Term Futures Message Board

  • richseanb richseanb Mar 15, 2013 3:38 PM Flag

    Can someone explain this to me please?

    As I said earlier this is my first time buying this. Bought in yesterday 10 min before close at 7.92. My question is why this morning when the dow was down 40 pts this was at 8.25+ but right now the dow is down 38 and this is at 7.98. Is holding this for a couple of days bad? Do you need to just sell after 30 cents gains. Is the only way to make $ on this is when there are huge drops?


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    • Watching your investment dissolve within a few minutes of buying this product is a good introduction to it and the way it works.

      Once you understand that buying UVXY a good way to lose, you are very close to knowing a good way to profit off it.

    • Again. I'm not sure why so may posters spent so much time to tell someone to stay away. They could have spent the same amount of time to give someone some guidance of what to do. I'm not a teacher so I'm not going to provide all the details. Here are some facts that may help point you to the right direction. You could make money from UVXY but it doesn't behave like a regular stock. It's pegged off the VIX. From what little historical data (2 years) we have on UVXY, it's definitely not a buy and hold equity. Like anything in the stock market, there will always be risks, however, there are certain window of opportunity where buyers will incur less risk. If you decide to buy UVXY, you should also consider buying SVXY when the time is right. UVXY and SVXY are opposite of each others.

      • 1 Reply to scleung
      • There has been no right time to buy UVXY as this ETF has always ben in a downtrend. And I didn't spend much time telling this person to stay away. It took me all of 90 seconds to write my paragraph. I could say the say of your comment. Why do some people spend so much time giving people misleading information about UVXY, which is what all your comment is, except the part that explains why you should not hold this stock. Why are you spending so much time saying all this. Maybe I want to tell the truth about this dangerous product called UVXY. And why do you care how I spend my time???
        You don't understand that UVXY is not "pegged to the VIX," as you are trying to teach the original poster (after you claimed you are not a teacher.) The UVXY is pegged to the near-term vis future prices, and that is where contango and backwardation come in. And since you are so wise, you know we are in a state of contango and therefore this ETF will only continue its downtrend. As long as the Fed throws 83 billion bucks a month at the POMO and the market, it appears there won't be any buying opportunity to go long on the UVXY or the VIX.
        This market used to be very volatile, but the Fed killed all that. But you don't get it.

    • Don't trade this. You will be sorry. Do you understand contango and backwardation? If you don't, stay away. This is based on the two near months of the vix futures. Learn about contango and backwardation and you will get a bit of an understanding. Do your realize that since the inception of UVXY it has been in a complete downtrend?? Do you realize there have been a number of reverse splits? Do you realize the high for this is just above $2400 and the low is right about where we are today -- just below 8 bucks??? That is a 99.9 percent loss. STAY AWAY. I can't say it loud enough.

    • There are many poster advising you to stay away. Those sound like good advice but at the end, you learned nothing.

    • you are hoping for a big move in the vix, usually happens when market is #$%$ out. i am long also,vix is at historic lows, and with all the problems in the world its way to cheap, europe is broke north korea scares iran israel, pension funds mostly underfunded and so on, just a matter of time

    • jondow69 Mar 15, 2013 9:08 PM Flag

      Hey rich,today was a melt up/down day very little volatility,you had a 30 cent gain? you didn't take it $$$? you were actually ahead? and you didn't book $?? leave now before its to late!jmo

    • UVXY is pegged to the VIX, not the Dow

    • sell,, take any profit,,, never look back,, stop loss,,,, don't hold overnight,,,, stay away,,,, or lose about 97% of investment and then pass along this advice to the next UVXY trader

    • Sell, run away and never look back...

    • if you don't undertand how this works, don't trade prospectus first....other easier trades, TZA, ERZ etc

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