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ProShares Ultra VIX Short-Term Futures Message Board

ralphjlindblom 2 posts  |  Last Activity: Apr 11, 2015 11:26 AM Member since: May 6, 2005
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  • Reply to

    Joey, "SVXY cannot get out of its own way" ?

    by emerging_mkts Apr 10, 2015 8:52 PM
    ralphjlindblom ralphjlindblom Apr 11, 2015 11:26 AM Flag

    Emerging:

    No problem on the 6 month difference.

    I agree with your BIG thoughts of having too much money in short vol will suppress the futures contango and may even cause backwardation.

    Currently, we have just the opposite situation.

    Based on current situation, as long as the general market holds up and the net assets of SVXY doe not swell, being short vol can be very profitable.

  • Reply to

    Joey, "SVXY cannot get out of its own way" ?

    by emerging_mkts Apr 10, 2015 8:52 PM
    ralphjlindblom ralphjlindblom Apr 11, 2015 9:17 AM Flag

    Emerging:

    Some facts (per proshares website).

    SVXY has not fallen from 600 million about a year ago to about 300 now. Actual dates are:

    4/11/14- about 200 million
    8/7/14- about 300 million
    10/28/14- about 580 million
    3/4/15- about 400 million
    3/24/15- about 290 million

    what has caused the large falloff in about 6 months?

    I looked at the VIX and it was 14.39 on 10/28/14 to todays low price
    I looked at SPY and we went from 196.96 to todays price

    I believe that the fall has to do with the 3 major dips that SVXY had from June 2014 to erly this year. People now realize that their is no free lunch and are not willing to hold this on a long term basis.

    I believe this is now more of a swing trade than a core holding.

    Good luck all

UVXY
9.93-0.19(-1.88%)Apr 24 4:00 PMEDT