WOW, Proshares reducing leverage on two volatility funds

UVXY, long volatility, went from 2x to 1.5x. SVXY went from -1x short volatility to -.5x short.

This seems incredible to me. wont they be suject to lawsuits for obvious reasons? what about those that purchased lawsuits before the change? do the options stay in place and the purchaers effectively get hosed?

Thanks!

 

Do you have a link to that news from the company?

 

https://www.cnbc.com/2018/02/27/firm-swoops-in-to-ensure-volatility-is-a-trade-for-another-day.html

 

This is what I needed. http://www.proshares.com/news/prosh...ns_to_reduce_target_exposure_on_two_etfs.html

Thank you bee.

 

Yes and yes.

https://www.theocc.com/webapps/info...e=201802&lastModifiedDate=02/27/2018+14:18:47

 

Bob, are you guys increasing your margin on short VIX and short volatility positions?

 

I was looking at purchasing one of those lawsuits. I was lucky - I couldn't stomach the lawyer fees so I passed.

 

old news.
before starting a new thread you should check to see if there is an existing thread,
https://www.elitetrader.com/et/threads/svxy-and-uvxy-leverage-slashed.318670/#post-4614447

 

YES. Wedbush has. I will send you detail.

 

Yeah... options holders are screwed... IV dropped 50% in SVXY and 25% on UVXY...

I think OCC should have treated it as a corporate action since the effect in IV is logical and substantial. It's the options that are most affected by this....