The October VIX futures are down 5.5% and the November VIX futures are down 3.7%. TVIX is 28% November and 72% October. 5.5 *0.72 = 3.96%. 3.7 * 0.28 = 1.04%. 1.04% +3.96% = 5%. 5% x 2 = 10%. Nothing asymmetrical or magical. Just math.
TVIX October floor is actually between $5.7-$6.2. Only months of contango can take it down further than that.
I just covered 1/3 of my position at $8 that I went short at $14 on 9/28. Now i only have the shares left in my account that I went short on 8/21, which is only about 2.5% of my portfolio that I will allow to run down to zero. Thank you Credit Suisse for creating the best wealth transferring instrument of our time. See you next volatility spike longs.
ha, no it is still there. it is buried in a long chain though. I make a pretty good and cheep hot dish, that provides all of the essential nutrition for just a couple of bucks per day. I started making it in college and to this day I bring it to work. My colleagues get a kick out of the fact that I can eat the same thing everyday. I joke with them and say that being content with monotony is my secret to a happy life and especially a happy marriage.
This could have been posted 3 years ago. i don't argue against your points, however TVIX will continue to be a loser, and if you pick the wrong time to go long you will never ever ever ever get it back. Just ask beachbum.
This is a terrible hedging product. You said you are not new to stocks, and if you have been in the game since before 2007, then you know how to use margin and leverage and survive downturns. However if you haven't used margin before 2007, therefore you have only used it in a bull market and you will be wiped out in a correction (or bear market) using margin to buy your stocks and using this as a hedge. With that same strategy, you will lose a great deal of money in a flat market (what I think we are facing over the next couple of years). If you are going to use margin, only buy high quality dividend paying stocks and protect them with collars. Use a separate account for more speculative investments, but don't borrow to buy. Good luck.
It will have a 7 handle some time next week, but I don't think it will break under $5 this year. Who knows though, maybe I will be pleasantly surprised.