jcllier3: Chris, I have a small $TVIX short position. What are your thoughts on shorting $UVXY? Seems to go to zero even faster than $TVIX.
Feb 1, 11:54 AM
•!Report Abuse
Chris DeMuth Jr.: That works too. My short VXX and TVIX ideas have been positions of mine for just over a year, so I have not don UVXY, but it is worth $0.00
Ocean Man: Have you added up the daily charges for holding VXX and TVIX short? No buy-ins in a year?
Feb 3, 9:07 AM
•!Report Abuse
Chris DeMuth Jr.: Yes and no. We began both of these in the fourth quarter of 2011. We value everything net of all costs. No buy-ins. Great brokers for us
Feb 3, 9:11 AM
•!Report Abuse
Ocean Man: Keep in mind that VIX is historically in backwardation 30% of the year, but only about 1% of the past year.
Feb 3, 4:16 PM
•!Report Abuse
Chris DeMuth Jr.: That is a fascinating statistic. How curious...
Feb 3, 4:26 PM
•!Report Abuse
Robert Schwartz: Please explain how a short position on TMF is better than a long position in TMV?
Mar 7, 2:08 PM
•!Report Abuse
Chris DeMuth Jr.: The constant leverage trap degrades the value of both over time (-1.26% for the bull and -17.92% for the bear over the past year).
Mar 7, 2:19 PM
•!Report Abuse
Chris DeMuth Jr.: Also, there is risk from the sponsors. And one can front run how they are traded/structured. I have no position in TMV but would short it.
