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Israel Shenker

 
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  • Are The VXX And XIV Just Providing Leveraged Market Exposure? [View article]
    Brilliant analysis of the volatility exchange traded products.
    Jan 7 02:25 PM | Likes Like |Link to Comment
  • The Best ETF Of Our Time (AKA How To Become A Billionaire Without Really Trying) [View article]
    ZIV has been having some issues advancing lately. Perhaps some money is being spent to purchase protection for next year.
    Nov 15 01:54 PM | Likes Like |Link to Comment
  • Linn Energy Cuts Transparency [View article]
    Are you sure that the hedges accounted for in their earnings are new hedges and not existing hedges whose value had to be adjusted due to time decay and changes in market value?
    Oct 30 05:03 PM | 1 Like Like |Link to Comment
  • Linn Energy Cuts Transparency [View article]
    Perhaps LINN is postponing their conference call because there is something imminent on the BRY deal?

    Disclosure: Long LINN with covered calls sold on that position.
    Oct 29 10:41 AM | 3 Likes Like |Link to Comment
  • The Worst Investment In The World [View article]
    Amen
    Oct 8 04:46 PM | 1 Like Like |Link to Comment
  • Why We Invest In ZIV And Not In XIV [View article]
    I agree with you that if you are able to use the actual futures your return will likely be better due to the lack management fees. However, since each VIX futures contract has a 1000 multiplier one would need to have a massive bankroll and spend time DAILY to manage the rolling of futures contacts required to mirror the performance of ZIV.

    Additionally, the liquidity of medium term VIX futures contracts is thin (though not quite as thin as ZIV)

    Finally, if one wanted to purchase $250,000 worth of ZIV they would be buying nearly 10,000 shares of a security which typically trades with around a 5-10 cent spread and only has about 2-4000 shares on the inside market. Slippage in this case would cost somewhere around $1000 (if you're lucky) on both the purchase and sale (close to 1% round trip) making liquidity for a serious investor a serious problem (XIV typically has a 1-3 cent spread resulting in far less slippage and much greater liquidity for the average investor)

    (Since you brought it up and although it was not part of my original question pre-market trading in ETF's commences @4AM EST whereas futures do not begin trading until 8AM EST.)
    Oct 4 01:16 PM | 2 Likes Like |Link to Comment
  • Why We Invest In ZIV And Not In XIV [View article]
    What would you say to those who question the liquidity of the instrument?

    ZIV has a trailing 3 month average volume of 62,517 shares a day according to Yahoo finance giving it approximately $2.1MM in total daily trades. XIV trades 10,711,900 on a trailing 3 month average which give it nearly $30MM in daily volume. That's 15 times as liquid.

    (Devils advocate question)
    Oct 2 12:07 PM | Likes Like |Link to Comment
  • The Best ETF Of Our Time (AKA How To Become A Billionaire Without Really Trying) [View article]
    If the Fed stops buying then someone else will have to step in an absorb that supply. Under current law, the Treasury can't simply print money. How do you suppose the Treasury will have funds to spend regardless of Congressional mandates?
    Sep 3 06:02 PM | Likes Like |Link to Comment
  • The Best ETF Of Our Time (AKA How To Become A Billionaire Without Really Trying) [View article]
    Without the Fed buying the rates would be higher and the debt would be greater. Despite all that liquidity being pumped into the system the economy is stalling. Obama will use the debt ceiling as his pinata to blame the other party for the lack of growth.

    Debt is neither a Red or Blue issue, it is a Green issue. I think both parties are to blame for the slide of this country economically. We need to stop borrowing.
    Aug 30 03:43 PM | 1 Like Like |Link to Comment
  • The Best ETF Of Our Time (AKA How To Become A Billionaire Without Really Trying) [View article]
    The economy has already begun to stall despite the Fed dumping $85 Billion in the economy every month. Now Obama needs a scapegoat and conveniently the debt ceiling is due to expire shortly. Throwing good money after bad is neither a Red or Blue issue it's a Green issue. Where we not considered the world's reserve country we would be flailing at double digit inflation already. That time will come sooner and with greater alacrity than anyone would care for as we continue to pile up freshly minted cash.
    Aug 28 07:18 PM | Likes Like |Link to Comment
  • The Best ETF Of Our Time (AKA How To Become A Billionaire Without Really Trying) [View article]
    Two things not taken into consideration in this article:

    1) The law of large numbers
    2) The maturity dates of the underlying ETN's/ETF's

    Otherwise, a well written analysis.
    Jul 24 03:45 PM | Likes Like |Link to Comment
  • The "fear gauge" is flawed, says Citi's Mike Pringle, and investors risk harm by using the VIX (VXX) as an indicator of market risk. "It's an asset class and it's more traded for yield than protection," he says, noting the growth of structured products based on the VIX as dampening reported volatility. "It's still relevant in extremes, but not in a normal functioning market." [View news story]
    Please explain the mechanics of the backspread you would be putting on.
    Jul 16 10:33 AM | Likes Like |Link to Comment
  • The "fear gauge" is flawed, says Citi's Mike Pringle, and investors risk harm by using the VIX (VXX) as an indicator of market risk. "It's an asset class and it's more traded for yield than protection," he says, noting the growth of structured products based on the VIX as dampening reported volatility. "It's still relevant in extremes, but not in a normal functioning market." [View news story]
    While Pringle does a wonderful job elucidating the data on trading volumes surrounding VIX derivative products that does little to explain the VIX spot pricing reflecting the premium paid for options on the SPX.

    The VIX spot pricing has nothing to do with the VIX futures or options. It is priced from a basket of SPX calls & puts averaging 30 days to expiration. No amount of trading in VIX derivatives will affect the prices paid for those options and thus the VIX spot price.
    Jul 10 10:26 AM | Likes Like |Link to Comment
  • More Bulls Than Bears [View article]
    Need to fix the title guys.
    Jul 4 08:58 AM | Likes Like |Link to Comment
  • Time To Add Some Volatility To Your Portfolio [View article]
    You must add one caveat to your thesis that is that contango is relatively flat. When contango in VIX futures normalizes VXX will lose on average .25% a day on futures roll. I'd hate to face that kind of "house" edge on any speculative bet. You may win in the short run but the long run will get you.
    Jun 13 11:03 AM | 1 Like Like |Link to Comment
COMMENTS STATS
118 Comments
62 Likes