Tried so many times to help the people who hold this. I will buy TVIX the last week of 2016 and sell for a double.
It's hard to keep up! I am not even sure I will buy at 75 cents! It seems like they should announce the RS soon.
Of course the idea of 1050 is patently absurd. As is 1800. What a joker! The Fed is never going to materially raise rates, not for 100 years or more, why can't he see this? I guess it doesn't matter since it's mostly his own money he's losing. I cannot wait for this to post a closing NAV of 6.66, although he might close it down first!
Could be even lower.
If your account is say 100K, a couple hundred a week is probably safe. This thing will of course drop on average 90-95% per year, but the spikes can be big sometimes. Personally I think we'll get a big spike in 2017, maybe 400%, but it still won't get back to where it was last week because it will drop so much the rest of 2016.
Careful, after the August spike last year I now know 5 people who went bust doing this- 3 of them in 2011 and 2 in 2015.
This market will never have a bear market (defined as 20% drop in S&P) ever again let alone crash. Fed cannot ever materially raise rates, so up we go. Wouldn't even matter if North Korea nuked the entire world.
20 would kill me but wouldn't make sense.