Seeking Alpha
  • Chris DeMuth Jr.
    Some shorts worth considering: $TMF, $FXY, $VXX/$TVIX for 2013
    2/1/13
    Reply (12)
    • 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.
      2/1/13
    • 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
      2/1/13
    • DeepValueLover: I'm short the $PST and loving every minute of it!
      2/2/13
    • Ocean Man: Have you added up the daily charges for holding VXX and TVIX short? No buy-ins in a year?
      2/3/13
    • 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
      2/3/13
    • Ocean Man: Keep in mind that VIX is historically in backwardation 30% of the year, but only about 1% of the past year.
      2/3/13
    • Chris DeMuth Jr.: That is a fascinating statistic. How curious...
      2/3/13
    • Robert Schwartz: Please explain how a short position on TMF is better than a long position in TMV?
      3/7/13
    • 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).
      3/7/13
    • 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.
      3/7/13
    • jaginger: Chris, i did a bit of charting on TMF. Seems to have little to zero decay. TMV does decay, but shorting puts you on the bull side of USTs
      6/26/13
    • Chris DeMuth Jr.: The decay is not bad, relative to the yield. So, it is less than equity triple inverse ETFs, but not relative to the yield over decades.
      6/26/13
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