I have done my research.........
I am thinking now MAY be a good time to buy.......
At these prices, the upside far outweighs the downside.......
I will roll the dice..........
I guess you did not read the part where buying TVIX is like buying a stock option. It loses value with time so if you don't buy right before the next peak then you will lose more than you can make. Normally these peaks come 4 to 6 months apart so since we just had one it would seem to me that the last thing you would want to do is buy now.
Have you looked at the 2 year chart? Apparently not. Because if you did it would cry out to you that this is a stock for shorting only, not buying. Everyone who is making money on this stock is shorting it. Everyone who is buying this stock disappears in a month or two never to be heard from again. So what do you want to do, make money or become one of those who goes poof?
I'm convinced now that I understand exactly why there are poor people in the world. And it is not because they were not given the same opertunities as others. Clearly that does not matter.
I agree this is a lottery ticket, yet its been flat to up the last 3 days in pretty high volume, while the VIX continues south. I find that strange, and it may be a long trap. Something different is happening, just not sure what it is.
I think this is correct. I use TVIX as a permanent hedge against my IRA long holdings. The data I looked at seems to suggest in normal market conditions (aka bullish market) the TVIX/SPY ratio is 10:1 on a daily basis and in market distress situations the ratio can go as high as 20-30 fold -- the ratio hit 23:1 during the European debt crisis of 2011.
So a real shock to the market could bring a 30-50 fold differential which is a worthwhile risk. I maintain a 30:1 ratio of long stocks vs. TVIX so in a true shock I should be covered.
I think the only other real alternative is to perpetually sell naked calls on the SPY or to buy puts on the SPY.
just be ready to take gains and jump immediately. with everything that has happened in the past few months, I don't see volatility being that much of an issue. unless an earthquake crushes california or we go into a real war, i don't think there is much to push it
This thing used to lag, so I purchased in trying to take advantage of that. My stop isn't getting hit so I'm still in, but there is no longer a lag that you can take advantage of on this. Volatility spikes up pretty fast but then usually drops down steadily and stays low. It can stay low for a decade or more, so something like this is kind of pointless to go long on.
The right play is to short this after the huge volatility spike when it shows it's beginning to drop downward.