Another skewed week for XIV... In a normal year with the type of S&P performance and the type of volatility we had XIV should be at $50 but instead hear we sit under $35 watching the S&P close at all time highs once again. VXX has even acted better than XIV in 2014 and they even have to deal with options which skew things big time.
Market has already recovered all its losses and XIV is still 20% lower. XIV doesnt shoot higher till after the market closes today. This product is so skewed now its ridiculous. We are entering the least volatile week of the year so XIV should have already cleared $34 today on its way to $40 by the end of the year.
I don't know but a 10% down move in the VIX is pretty good and XIV spent most of the day only up a little over 1%. The SPY and the DOW almost out performed XIV.
He doesn't want people bashing his product that doesn't do what it's supposed to do. His pals at Velocityshares thank him for trying to pump this garbage product that should be at $48 not $39.
You could have tripled and quadrupled your money in multiple stocks in the time it took these clowns to finally sell the company. I can't believe they tried to make a business out of laughing and crying medicine. Now it's Otsuka's problem and they won't be able to make any money on it either.
It's pretty bad that the S&P 500 has almost outperformed XIV over a 1 year period. Basically both at 15% gains over the last year. XIV should be up at least 50% every year.
In 2011, 2012, and 2013 XIV would outperform or at the very least match the inverse of VXX (I know they are two seperate items but they used to correlate inversely) but now in 2014 XIV is not even close. Credit Suisse is skimming money and making this product not correlate to anything not even the supposed daily inverse return of the index.
I have ran my own calculations and everything makes sense until 2014 and now they have somehow skewed this product to no longer do what it is supposed to do. The fact that it somehow dropped below $30 on that last collapse was garbage. Your math no longer makes sense Credit Suisse so time for you to talk to the SEC.
The index was designed to provide investors with exposure to one or more maturities of futures contracts on the VIX, which reflects implied volatility of the S&P 500 Index at various points along the volatility forward curve. The calculation of the VIX® is based on prices of put and call options on the S&P 500 Index. The S&P 500 VIX Short-Term Futures Index ER targets a constant weighted average maturity of 1 month. The ETNs are linked to the daily inverse return of the index and do not represent an investment in the inverse of the VIX.
For some reason Contango no longer matters to Barclays... Most years this would have been sitting under $20 by now but all of a sudden in 2014 Barclays has magically been able to get rid of contango.
VXX and TVIX up same amount? Did someone forget to tell Barclays TVIX is 2X VXX?
I can't wait for the next reverse split on this trash.
Nice job Barclay's. You have designed a product that does nothing it's supposed to do.
1. Track Volatility - Depends
2. Track S&P 500 Options Pricing - Depends
3. Contango - Depends
Let me make this easy for you Barclay's.
When VIX is down and S&P 500 is up, VXX should be down especially since there is this thing called Contango.
I realize you are trying to hold this thing up but it is a shock to nobody who has looked at a 5 year chart that this thing is designed to go to zero. There is no reason to save the suckers who bought at $30 or $40 or $500 (with reverse splits).
Since none of these volatility instruments do what they are supposed to do you can make a lot more money trading 2x or 3x Bull or Bear ETF's from Direxion or Proshares. I have no clue why anyone would ever buy VXX, TVIX, or UVXY they are nothing but a way for Barclay's to steal money.
you know the thing that is a derivative of a derivative of a derivative. You know the thing that when you look at a 5 year chart you realize is not an investment that should be a buy and hold. You know the thing that if you don't time perfectly will drop 10% to 20% in a couple days as you scramble to get your money out.
You guys keep hoping for that 5% pop but we all know that sometime over the next two months the bottom will fall out of the VXX and if you are the last one out the door you will never see your money again.
All you have to do is look at a 2 year chart to realize that buying at these levels and praying for a $2 to $4 pop is not worth that chance of this dropping $5 to $10 in a couple days.