Good call. I wrote santa a letter and asked for TVIX at $2 by Christmas. I've been a good boy this year, so hopefully the big guy comes through.
Bingo. Plus market makers would figure it out too quick if there was too large of a price discrepancy. TVIX shorts sellers have zero impact on the TVIX, VIX, or the S&P.
I haven't seen him on here since October as well. Maybe he panicked, I don't know. Maybe he just got sick of hanging out here. Maybe after his last short in October, he bought some small island and retired, his timing last time certainly seemed better than mine. Who knows.
I put on another short around the close at $3.30. I don't think I will put on any more unless the VIX gets to 25. Unfortunately TVIX went into backwardation today. Good Luck to all and have a good weekend.
Sounds like a good trade. Most people can't walk away with a profit. Stockarerigged seems to be about the best trader on this MB.
That was a great trade. If you don't want to short this, you can use call options on SVXY. The premium on the options are nuts though, so I like to use call calendars on it to decrease my cost. That is how I short VIX futures in my IRA and ride the contango machine. I don't like the idea of owning the actual common equity in SVXY because if the vix futures contracts double in one day, the SVXY will go to zero. So I commit and risk less capital with options.
There are 1.5 million shares available to short today, just at my broker. Hard to Borrow rate is stil at 3%. I don't see how there could be a short squeeze. The price action is just reflecting the change in NAV.
My short position is fine. I don't live and die by daily performance. I will however add more to my short position if the VIX goes to 25. The VIX futures contracts are still in contango, however I do anticipate them going into backwardation if the VIX remains elevated for another day or 2. That is when I typically get a taste of my own medicine. I don't mind admitting my timing sucked on this, my timing has never been good, which is why I don't day trade. But yet I still win over a longer time period. Good luck to you.
I may not be correct today, but I willl be correct in 2 weeks. as long as I have to have the capital to ride out these short term anomolies, I will win in the end. Picking up a long in this and winning is just plain lucky and only temporary. The real question is will you sell in time? If you do, congratulations on an excellent trade.
The main thing that caused TVIX to not crater and then skyrocket on Thursday was the thought of a government shutdown. The house just passed the bill. TVIX will more than likely be under $2.5 Frriday, then it will drop below $2 before the end of the year (maybe even next week).
I put on my first short position since september at $3 today near the close. I never thought it would get this high again. That was a strange blast of volatility today.
The Dec futures are trading around $15.85, with the cash price at $16.32. It looks to me like no one with real money on the line believes the VIX will stay up here for long. Oh Beachbum, you are losing around 0.43% to contango today... just in case you were wondering.