the indicative value of VXX closed up 0.27% for the day while VXX closed down 0.89% The June futures spurted up a dime by the close of futures trading @ 1615, after the proxies stopped trading for the regular session.
This month's VIX proxy cycle ends with tomorrow's SOQ, special opening quote of VIX, based on first print.
As always, SVXY is ONLY 100% correlated with VIX futures and will have 95% correlation today with the June futures. As Ralph stated, expecting correlation to the SPY, DJI, the bhat, or the price of tea in China will just frustrate you.
The problem is that CBOE provides futures quotes with a ten minute delay. Hence, we may see wild fluctuations in SVXY before they are reflected in the delayed futures quotes.
As a retail player, I do not have access to realtime futures quotes.
Hopes this helps,
That 1% drop in June futures has arrived
New all time high SVXY now @72.13 at last.
If VIX remains unchanged through Friday, June futures could fall below 14, and we might see SVXY hit 74!
Food for thought
Last week the VIX was identical to where the VIX was the week before expiry in January. In January, the back future dropped all the way to 13.85
1/17/14 1/22/14 5/16/2014
^VIX 12.44 12.84 12.44
front future 13.45 13.25
back future 14.25 13.85 14.65
VXX 41.13 39.97 36.55
UVXY 15.54 14.70 44.50
TVIX 6.83 6.51 5.01
SVXY 139.51 143.26 70.36
VIX 12.42 -0.02
VX K4-CF 12.95 -0.05
VX M4-CF 14.35 +0.00
13.85 represents another 3.5% drop from where we are now which, if it occurs, will result in a possible $2.50 gain in SVXY in the next week!
"Credit Suisse pleads guilty in US tax evasion case! That proves that TVIX is JUNK!"
This is just incredible LOGIC!!! And debated fiercely by Twiddledee and Twiddledum in "Through the Looking Glass"!
'I know what you're thinking about,' said Tweedledum; 'but it isn't so, nohow.'
'Contrariwise,' continued Tweedledee, 'if it was so, it might be; and if it were so, it would be; but as it isn't, it ain't. That's logic.'
"but uvxy goes down 2.6%? that makes sense"
May 16, 2014 May 19, 2014
^VIX 12.44 12.42
VX 05/21/2014 13.25 13.0000 -1.89%
VX 06/18/2014 14.65 14.3500 -2.05%
^UVXY-IV 44.80 42.967 -4.09%
UVXY holds ~95% June VIX futures. They were down 2.05%. UVXY was down x2 that amount.
Please tell me to ignore all these knuckleheads! Why do I waste my time trying to educate them???
PS: BROKEN! RIPOFF!! SCAM SCAM SCAM!!!
Just a 1% drop of Jun VIX futures to 14.30 will translate to new all time high (finally) in SVXY
I anticipate this drop even if VIX remains unchanged or as high as 13 this week!
Math is kewl!
VIX 12.37 -0.07
VX K4-CF 12.98 -0.27
VX M4-CF 14.44 -0.21
"Yep I'm out... just trying to figure out how to short this thing, no options chain."
I've addressed your lament twice in the past several days. Do you read any notes or just enjoy whining?
"Has anyone heard about the coming change in margin requirements for these two ETNs?
Because of the perception that ETNs have a higher risk, they may not even be marginable with the new rules.
This would affect any long and short shares position. This may also affect the margin requirements if you are naked shorting the options."
Do you mean VXX and TVIX?
Options have their own unique margin requirements.
I could find no new regs either on google search or FINRA website.
Now that TVIX will be basking again in the subtropical climes below $5/share, many brokerage houses will require 100% maintenance long and/or short.
"I think it means 'deciding' to make no further posts, citing heat from the job etc has been superseded by the reality that it doesn't matter/was made up, thereby 'switching back' to previous lines of discussion."
Aha! That's it!!!
PS: I miss your commentary, Joey. Sick of the endless, mindless drivel???
shhh!!! there goes our secret...
but these etps are really all scams, huh?
PS, I'm envious. Didn't discover these guys until Nov 2012.
Do you have any commodities contango etp plays that you like?
"once this stock hits the $25 level it will reverse split. Its in the bylaws of the #$%$ stock. they are already done so 2 times and this eft is only like 3 years old. Criminal, scam"
"will reverse split": grand slam
"stock": strike one
"etf": strike two
"scam": strike three, YOU'RE OUT!!!
VXX is an ETN. It functions exactly as promised by its prospectus. (Have you read it?) It is not a scam. Perhaps it should be criminal to gripe about an instrument that one doesn't understand...
If you play the dark side of these VIX proxies you could change our alias to "willhavesomefun"
"guppies & 'switchbacks.'"
kingphister: what does 'switchback' refer to to.
Again with all due respect, kf, I think that your constant reference to the enormous contents of your exceptional scrotum has grown quite stale, is extremely juvenile, and not the least bit funny at this point.
TVIX is NOT a stock; it is an ETN.
TVIX is NOT a scam. If you understood the product, you would know that it functions exactly as promised in the prospectus. Have you read the prospectus?
You are correct; most people who buy this piece of mathematical detritus truly will be sorry!
Do you even bother to read previous responses, especially to the identical question that you ask again ;-(
bustin_ur_chops • 12 hours ago
TVIX is available to short.
At my broker, realtime:
Symbol Name Availability Available to Short Est. Annual Interest Rate
TVIX CREDIT SUISSE AG NASSAU BRH Hard 1,205,850 3.000 %
But shares are htb, hard to borrow. That means that shares to short from your broker via his other clients are probably not available and he must literally rent shares from another broker. My broker charges me 3% annually prorated daily against that day's mkt value.
In order to short TVIX most brokers require that you attest that you understand that:
☢ volality ETPs are complex and are for daytrading hedging, not longterm investment
☢ that you will be charged a hard to borrow fee
Most online brokerages will not allow website shorting of TVIX or her ilk (you might simply be informed that trade cannot be made) or her cousins and require a phone call!
Options are NOT available for TVIX but do trade on UVXY, TVIX's first cousin that is an ETF rather than an ETN.
"they took my 1,000$ and ran"
" doubt if we'll ever see them again. You would think someone would say something on here whether or not it's positive or negative"
Who took what $1000?
You doubt that you will see WHO again?
You would think that someone might say something about WHAT is positive or negative?
With all due respect, jgb, BUT what the "f" are you talking about???
I've posted nothing but warnings on MSSD intermittently for over a year here and on iHub.
Props to you, rb, for some great timing and your sweet ROI!
". I would not short it now. "
Actually, I think that the risk/benefit ratio is awesome for a one week speculation on the short side. Despite the fact that the VIX is so low, with contango so steep just two full biz days before Wed am VIX futures expiry, I believe that the June futures might drop another 2% even IF the VIX pops to 13.5. Jun futures could drop below 14 if the VIX remains below 13.
Hence, if the VIX stays south 13.5 next week, TVIX might decay another 4 to 10% next week alone!!!
VIX 12.44 -0.73
VX K4-CF 13.25 -0.45
VX M4-CF 14.65 -0.25