Short SVXY Put Margin Logic

Guys, I'm shorting a put -- not the stock, not a call. The stock can go to 1,000 for all I care; I pocket the small premium, if it stays above 20. If it goes to 0, it's put to me at 20, which means I am down 20 -- my max loss.

 

Strike of 20, for a pittance.

 

Clearly there a broad consensus by other posters here as well as IB that SVXY may break strong support at 0.00 and trade into the negatives!

 

How do you lose money if you buy svxy at 20 and now it is higher at40. please explain.

 

please explan than why the high margin requirement

 

Re-read. -$40. Obviously it is not possible. Unless you give your money to this guy to invest.

 

The devil is in the details.

 

Why are your losses unlimited. Please show by example.

 

I already provided correct answer above. No need to continue beating the dead horse. The OP can simply verify it.

 

You made a guess at an overall requirement, There are people who say that losses can be unlimited. I would like to see mathematical proof.