Ongrichar, UVXY is perhaps the most complex instrument trading in the stock market. Instead of nickle and diming us "pros" with basic questions which have already been answered before on these mbs, please educate yourself first. I spent a solid month of intense research before I dipped my toes into the mire known as VIX proxy land.
I posted an exhaustive 2 part study guide on iHub on June 7.
Google: "VIX Proxy Curriculum iHub"
And play the dark side,
"It is not going to $2.5 this week or next, maybe in the future. As I said VIX is at 10.6, for it to go to $2.5 in the upcoming days, VIX would have to drop to almost high 8s."
Actually it is possible, but not probable, that TVIX could drop to $2.50 in the next week without the VIX even budging.
$2.50 would be a 20% drop from today's close.
There currently is a robust 20% contango btwn spot and July futures. The VIX proxy composition is mostly July futures for the next week. If the VIX remained the same but July futures fell 10% to 11.50, TVIX will decay to $2.50!
VX 07/16/2014 12.7000
VX 08/20/2014 13.7000
Preferred B issued for $2.64, not .56. Converts to $5 common; Nearly 100% return on converting debt to equity!
8% Series A Senior Subordinated Convertible Redeemable Debentures On April 30, 2008, we entered into a stock transfer agreement with our parent company Nexia and Nexia's wholly-owned subsidiary DHI whereby they would each sell their holdings in Landis and Newby in exchange for an 8% Series A Senior Subordinated Convertible Debenture with a face amount of $3,000,000. Interest on the debenture commenced on December 30, 2008. The debenture holder has the option, at any time, to convert all or any amount over $10,000 of principal face amount and accrued interest into shares of Common stock, $0.0001 par value per share, at a conversion price equal to 95% of the average closing bid price of the common stock three days prior to the date we receive notice. In February of 2011, DHI transferred the Debenture to Nexia in exchange for the release of debt obligations owed to Nexia by DHI and Nexia is the current holder of the Debenture
On March 28, 2014, the Company authorized the issuance of 113,469 shares of Series B Preferred Stock to Akron Associates, Inc. in exchange for the release and settlement of $300,000 in debentures and accrued interest owed to Akron. The shares will be issued with a restrictive legend to Akron.
On March 28, 2014, the Company authorized the issuance of 75,654 shares of Series B Preferred Stock to Desert Vista Capital LLC in exchange for the release and settlement of $200,000 in debentures and accrued interest owed to Desert Vista. The shares will be issued with a restrictive legend to Desert Vista.
The shares of Series B Preferred Stock to be issued are each convertible into $5.00 of common stock, based upon the average of the average closing price for the common stock of the Corporation as reported by OTCmarkets for the five trading days prior to the conversion.
"GRNE gets ready to add another 10 stylists to its roster. Will revenues soar as a result?"
No! A publically traded bankrupt company with two hair salons in UTAH!!
The SEC FILINGS were a blast. I posted an analysis f this bankrupt micropenny piece of detritus on the GRNE board.
The SEC filings were a hoot!!!
A bankrupt publically traded company with two hair salons in Utah finance with toxic debentures and convertible preferred stock!
I especially like the series B preferred recentlly issued for $.56 which converts to $5!!!
Oh, when current liabilities far exceed current assets, a firm is essentially bankrupt. But I guess all of you already know that!
from SEC FILINGS:
Liquidity and Capital Resources
Cash and Investments in marketable securities As of March 31, 2014, our principal source of liquidity consisted of $135,081 of cash, compared to $105,984 as of December 31, 2013. Our primary sources of cash during the three month period ended March 31, 2014 were customer payments for salon services and products and proceeds from issuance of convertible series B preferred stock. Our primary uses of cash during the three month period ended March 31, 2014 were payments relating to salaries, rent, and other general operating expenses as well as payments of notes payable.
We had a working capital deficit of $911,070 as of March 31, 2014. Our current assets were $300,267, which consisted of $135,081 in cash, $12,176 in accounts receivable, and $153,010 in inventory. Our total assets were $826,656, which included $447,049 in property and equipment (net), and $79,340 in other assets. Our current liabilities were $1,211,337, including $425,549 in accounts payable and accrued expenses, $170,914 in amounts due to related parties, $400,002 in the current portion of convertible notes and notes payable and capital leases payable, $55,346 in deferred revenue, and a $47,333 derivative liability. Our long-term liabilities were $2,250,447. Our total stockholders' deficit at March 31, 2014 was $2,635,128.
to be continued
"Not an outrageous bet. This thing could pop at any point to well over 100. I doubt it will. Still, I can see why people buy the calls."
100.00 VXX160115C00100000 2.66
105.00 VXX160115C00105000 2.40
Here's a great example of the use of spreads. Last trade prices above.
One could roll the dice on one 105 call for $240 with a break even of 107.40 and a potentially unlimited payout.
Or one could purchase for $240 and change 9 100/105 spreads for a net debit of $.26 and a b/e of 100.26.
The maximum return is not unlimited, but a paltry $4260 per $240 spread...
If I were crazy enough to buy the 'VXX greater than 100 lottery ticket', I'd be happy with an 19:1 payout!
"Nightmare Bill HR#2847 goes into effect on July 1st 2014"
google: "snopes hr 2847"
really... you need to stop listening to "rush", "sean", "glen" and "laura"
there is so called beta decay in levered and levered/non-levered inverse ETPS due to the mathematics od the daily percentage mvmts
google: "leveraged etf decay"
I posted on iHub last week links to all the knowledge you need and desire
google: "VIX proxy curriculum" there are 2 parts
I will not respond to any more of your posts; continue to wade in further ignorance if you so desire or educate yourself...
Raybans, you're close but you still don't seem to understand that ETNs are simply a note; an IOU that the issuer will pay you, at maturity, an amt based calculated on an underlying index.
Please google: "ETN creation redemption"
from the Scotttrade entry:
"ETN Creation & Redemption
The ETN creation process is much simpler than ETF creation because the issuer is not purchasing any underlying securities. The redemption process is also simplified because shares can be redeemed by anyone with sufficient holdings, and no Authorized Participants are required. ETNs can be redeemed from the issuer before the maturity date in large blocks of notes, and the prospectus will detail the number of notes or dollar amount that is required for early redemption. Typically, the number is high, in the neighborhood of 50,000 notes, so shares are only redeemed or repurchased by institutional investors. This can be done on a weekly basis."
ETNs have no "tracking error". Shares are created/redeemed to meet demand and minimize premiums/discounts. I cannot explain the permanent premium to TVIX.
And, yes, there are management fees, but the are trivial.
And, yes, if you wish to speculate in ETPS, it is generally best to short the opposite, not to capture the mgmt fee, but to capture the so called beta decay intrinsic to levered and inverse ETPS. VXX is neither levered or inverse but decays due to contango and negative roll yield...
With all due respect, Ray, please be aware that TVIX is an ETN; it doesn't directly purchase futures. It moves per day twice the percentage change of VXX or the S&P 500 VIX Short-Term Futures Index.
UVXY, TVIX's first cousin, is an ETF THAT purchases VIX futures plus other instruments to achieve leverage.
** June futures expire Wednesday morning; then a new cycle of robust contango and TVIX decay may begin...
"average TVIX moves up then TVIX almost immediately is under heavy sell pressure."
Sorry for your loss CashGuy. Regretfully The University of TVIX took_ur_cash.
ETNs and ETFs have limitless supply. There is no such thing as "selling pressure".
To educate yourself, Google "VIX proxy curriculum iHub" a two part primer on the VIX ETPS THAT i posted last week...
"Your problem is thinking TVIX is "designed" to go to zero."
With all due respect, fighter, TVIX mathematically IS guaranteed to asymptotically approach zero.
"They try to beat it down all day without success."
UVXY only cares about the VIX futures and especially its indicative value. Those nefarious shorties cannot "beat it down"!
It doesn't care a hoot about volume, short interest, box springs, rusty springs, or coiled springs!!!
Just play the dark side...
"Glad I had that DUST short peeps"
Nice 30% drop, Joey. Props to you! (Must be wedding season in India...)
"Well, remember this trades off the futures, not the spot. I doubt you would see 40%. In fact if SVXY hits 70 it will bring out some big time buyers."
So, if SVXY hits 70 and brings out "big time buyers", the ProShares AP will simply create new shares to meet demand and its price won't budge. There is figuratively unlimited supply and liquidity; volume, short interest, support levels etc are moot...
"I bought 1000 shares for 5.09 and recovered at 3.59 after losing $ 1500. I thought short ratio is more than 25%. Even lot of time vix is high, still this stock didn't work that way. This stock have only reverse gear from last few years."
TVIX is NOT a stock; it is an ETN.
And it is derivative to the 6th power.
And short interest is irrelevant as there is limitless liquidity.
Please read my past notes for further explanation,
"One more up day just to tied you over."
Definition of TIDE OVER
: to support or enable to survive temporarily
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