A few points for you. First of all, there is no free lunch. Ever. If this were the guaranteed money maker you think it is, hedge funds and other managers with deep pockets and number crunchers would just be investing in this and crushing the market. It works until it doesn't. In 5 years SVXY will be significantly lower than it currently is because there will at some point be a spike to 30 or 40 on VIX and a period of backwardation.
Finally realize this product has only existed during an incredible, artificially propped market rally. How will it act in more normal times? We don't know but I expect it will be ugly. A swift 15% correction over several weeks can hit this for 80 or 90% or more. It could even cause such a drop that they close the fund. This can happen remarkably quickly and without regard to your stop losses. Something to keep in mind. I suspect some people here will lose all their profits and almost all their principal besides.
youre right, this is riding the feds coattails and at some point its going to end; but thats not now; nor in the next 3 and probably 6 months.
this thing is just following the rest of the mkt on the feds magic carpet ride. there's a bunch of #$%$ companies that tripled in 3 yrs too because of the fed.
we're all taking a risk staying in, as far as the mkt is now very, very overextended; but so are the people with netflix and testla stock; but just today; yellen said the printing will continue; so putting money in for a reversal of the upward trend is a bad idea.
The key part that nefariouswu (and others that buy calls on UVXY) are missing is that the FED has been printing money for such a long time that it juices the market. You have to ride with the FED while the market is being juiced.
Once you anticipate the Fed buying to be curtailed (taper), is the time to take your profits and maybe wait for the Spot vix to go back up to its average long term rate (excluding a few major crisis) of about $15-$16.
Then it would be the time to buy the stock again and let the monthly contango work for you.