You dorks still talk about this thing as if it's a "stock". It's the farthest thing from a stock as you can get.
You CAN'T actually be serious, yes? I can't fathom why anyone would apply typical trading techniques like "double down" on this product. These "volatility" instruments LOSE money 99% of the time. UVXY is guaranteed ultimately to lose money, even at what would appear to be a "good price point". Even if you see a momentary pop to, say, 11-12/share (which is about all you WILL see), there's absolutely no way you're going to break even, much less make any $'s.
So, what gives? Are you trading with granny's retirement fund?
" Imagine if the formula for your shares of UVXY was to be forced to sell tomorrow at 10 but you are also forced to buy with that amount of money that same equity at much higher 14.62 per share. "
This is exactly correct. The only way in theory to be able to use this vehicle profitably is to leverage it against a sustained downturn in the S&P 500, wherein the front month futures (temporarily) gain value over the succeeding month's contract. This happens only relatively rarely. Other than that, a momentary tick-up on the share price due to intra-day market activity can earn a quick buck or two. Overall, this and other similar volatility instruments are pretty much totally useless as profit generators.
There'd never be a "class action" against ProShares for this trading tool. Their own prospectus very plainly states that UVXY will lose value over time, and trends toward zero.
In a bull market, the thing to do is go long with XIV. End of story.
Do what your granny does, and put your money in a cookie jar. It'll be safer there.
Who are you referring to? The market's up big .... again. Only one's not making $'s are UVXY buyers.... YOU, perhaps?
looking to get back a nickel on your dollar? Save your stress for more important things .... like how to AVOID losing more $'s on volatility trades.
Man, you guys who play this thing, hoping for some earth-shaking "pop" in volatility, should just do yourself a favor and INVEST in stocks of legitimate co's, and stop playing roulette with this silly cash-burner. Do you realize that 95% of these volatility instruments were created around the time of the 2008-2009 crash? They're just money sucking machines invented by the investment houses like Proshares, VelocityShares, and all the others, to trick the retailer into thinking that they've got new "useful tools" to trade like the 'Big Guys'. You're all a bunch of suckers.
Boy, if this is representative of your trading "strategy", you're gonna have to hit on your granny for more trust money sooner than you think.
You're gonna hang around waitin' for another 2008 ?
(hint: bundle-up, buddy, 'coz you've got a LONG wait ....)