XIV termination event?

XIV, SVXY Halted, News Pending
https://www.zerohedge.com/news/2018-02-06/xiv-svxy-halted-news-pending

 

XIV and SVXY most likely gonskies!

But why ZIV? Wouldn't a ZIV termination event require like a 400% spike in vol?

 

the real question is why did the VIX make such a move? there's no reason for it

 

why would buying of the vix futures cause real volatility in stocks?

 

This twitter thread outlines the mechanics of the XIV in simple terms:



Essentially inverse ETF's are worthless long-term investments and should not be used by retail customers.

 

The yuuuge UX front end backwardation suggests hedging of short term moves.

 

a) Because sometimes the tail wags the dog
b) IV-RV spread can widen, i.e., higher IV does not necessarily mean higher RV.

 

XIV gone. CS announced acceleration event. A lesson for all picking nickels in front of steamrollers.

 

Wow, UVXY just went from 30 to 15. Amazing. VXG8 & VXH8 both down over 30%... 20% to go.

 

XIVH is still trading