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It's another ugly day for the VIX (VXX -9.4%) which is back to levels similar to those seen in...

It's another ugly day for the VIX (VXX -9.4%) which is back to levels similar to those seen in April 2010 and April 2011, i.e. good times to lighten up on stocks. The dive in the VIX just adds to troubles for the TVIX, which has seen both its premium to NAV and its NAV itself disappear. TVIX -17.6% today, down nearly 60% in 3 sessions.
Comments (7)
  • Gary Jakacky
    , contributor
    Comments (2393) | Send Message
     
    Silly WABBIT! VIX is for KIDS!
    26 Mar 2012, 04:54 PM Reply Like
  • vuppaluru
    , contributor
    Comments (9) | Send Message
     
    is there any hope at all on TVIX? can we consider it as DEAD?
    26 Mar 2012, 04:59 PM Reply Like
  • torahislife
    , contributor
    Comments (400) | Send Message
     
    After pre-market decline which accounted for most of TVIXs price drop, TVIX hit NAV and actually resumed trading "normal" again today. Was a good buy for those lucky enough to pick up below NAV.
    26 Mar 2012, 05:06 PM Reply Like
  • assetman07
    , contributor
    Comments (61) | Send Message
     
    Correct. A good day if you're a daytrader.

     

    Here's a lesson, though... don't by TVIX at a premium if UVXY is trading close to NAV (which is true most of the time).

     

    And don't buy either one... most of the time.
    26 Mar 2012, 05:24 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8135) | Send Message
     
    As far as I can tell only two more ETPs are trading at extreme valuations above NAV at this time.

     

    FWIW, two or three trading days in a row of 2%+ declines in the S&P 500 would turn TVIX into a moon shot!

     

    The moment you hear that South Korea has shot down a North Korean long range missile or that Israel has fired on Iranian ships in the Strait of Hormuz, back up the truck on TVIX!
    26 Mar 2012, 09:48 PM Reply Like
  • losingbeta
    , contributor
    Comments (8) | Send Message
     
    And what would those two be? GAZ has dropped quite a bit in the last 3 trading sessions (no doubt caused at least partly by the TVIX debacle) too.
    26 Mar 2012, 11:00 PM Reply Like
  • karimo
    , contributor
    Comment (1) | Send Message
     
    it has returned to its NAV normality . added to this is the fall in the underlying VIX .
    27 Mar 2012, 01:58 AM Reply Like
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