Shorting UVXY, TVIX, surviving, and profiting

Discussion in 'ETFs' started by Saltynuts, Feb 7, 2018.

  1. It's like you don't realize the absurdity of what you're doing. Imagine if everyone here started four threads for every question they had. It would be impossible-to-read chaos. In your case it's even worse since there are so many vix threads that are already up and running. Don't be selfish.
    #11     Feb 7, 2018
  2. I don't think you realize the import of what I just said.
    #12     Feb 7, 2018
  3. Great then...and apologies for my previous (and unnecessary) post.
    #13     Feb 7, 2018
  4. S2007S


    I was reading recently that shares to short are almost impossible to find!!!
    #14     Feb 7, 2018
  5. S2007S


    So I found the split history on TVIX's split a total of 5 times ...doing quick math that would put TVIX at a presplit price of approx: $2,355,000 a share!!!!!!!

    I think this last surge has given TVIX a bit more breathing room....I'm looking to get in but of course this has to be timed perfectly...I wouldn't look to buy now, however this could spike to $20+ if the vix continues its surge....waiting for the VIX to collapse back below $12 and TVIX under $6

    Event Dates Split Ratio Inception / close price right before reverse split (split adjusted) Months since inception /last split
    Inception 29-Nov-2010 100 (25,000,000)
    1st Rev. Split 21-Dec-2012 10:1 0.9 24
    2nd Rev. Split 30-Aug-2013 10:1 1.68 9
    3rd Rev. Split 23-June-2015 10:1 0.75 22
    4th Rev. Split 9-August-2016 25:1 0.92 14
    5th Rev. Split 16-March-2017 10:1 3.84 8
    #15     Feb 7, 2018
  6. Yep S20075, it and UVXY both are down like 99% since inception. They could definitely spike a bunch more though - they are up again after hours.
    #16     Feb 7, 2018
  7. S2007S


    Yes 99% and still open for business....I have timed TVIX wrong a few times...last time was March 2016....that's the last time I traded it....I was actually looking to buy around 5-6 weeks ago but thought the same demise would take place just as it did last time I bought at that same level...
    #17     Feb 7, 2018
  8. JackRab


    Some amazing after-the-fact analysis... you should be writing for Bloomberg.

    If you would have posted this 2 weeks ago I would say great job underlying the risks... now you're just repeating common knowledge.
    #18     Feb 7, 2018

  9. Its almost like you read one or two lines into my post, then your ADD kicked in, and you spazzed out and decided you had to post something right away. I didn't just "underly" the risks, I posted thoughts as to how one might deal with them and potentially still make good money. Have anything relevant to contribute, toadie?
    #19     Feb 7, 2018
  10. JackRab


    I have stated all these things in the past mate...

    Posting it now is just saying the obvious... "look out, because when the VIX jumps you can get wiped out ..."... that literally happened in the past 4 days.

    Anyhow, VIX calls are usually quite expensive, ATM implied vols sit normally at about 80-100 and OTM calls are upwards from that. And I think the 40 call wouldn't really make a big dent since they don't tend to get ITM. That's because they are not based on the VIX index, but the forward vols... which are the futures. It doesn't move as much as the index.

    Although there will be a part that's hedged... that 5k in options will likely only cover about 50k. You would do better if you have calls that are closer to the ATM, maybe 25% out... that way the delta will kick in sooner and actually protect something. Will also work better at smaller spikes.

    But yes... something in place is better than nothing.
    #20     Feb 7, 2018