The Bulletproof Case For Going Long On Volatility [View article]
Best move is to wait for the market to crash and load up on XIV. It doesn't typically have the same contango issues that the long-VIX ETN products does. Perfect play after the 2011 debt crisis. Check it out
The Bulletproof Case For Going Long On Volatility [View article]
Great idea, wrong execution. @Michael Nau nails it on the head. VXX and especially the levered UVXY will continue to see their value eroded due to the VIX term structure (trying learning what contango is). You'll be so negative in your VXX position by the time the VIX spikes that you'll pray to get back to breakeven
Volatility ETFs Could Face A Short Squeeze [View article]
Rubenov has me covered. Completely different from what you're referring to Larry, but when the issuing bank/securities firm stops issuing the ETN, the price of the ETN may begin to trade at significant premiums to the assets NAV (see Arshok's comment about about using Yahoo Finance to check the NAVs). Actually what happened is CS stopped issuing the shares, the premium of ETN to NAV jumped to over 100%, and then CS announced they would issue shares again in a limited capacity, dropping the ETN price to the NAV.
Then are plenty of well written articles about volatility products on seekingalpha. I would encourage you to read them before the roll decay eats away your position while you wait for a short squeeze to come to fruition.
Volatility ETFs Could Face A Short Squeeze [View article]
I would assume that if the VIX trend was reversed, VXX would've performed much like XIV did. Continuously taking advantage of backwardation (in XIV's case) which compounds the returns. The VIX term structure is all that matters in these cases - with the exception of the TVIX's and UVXY's which are levered and suffer from leverage decay as well as roll decay.
@Arshok - you're absolutely right. I had the misfortune of being long TVIX when it came unhinged. That was a bad week
Volatility ETFs Could Face A Short Squeeze [View article]
correct me if I'm wrong, but these products trade off of the underlying VIX contract and not on the inflows/outflows into the ETF. So even if all those people that are short VXX cover their positions, that doesn't result in a short-squeeze. If I'm reading this correctly, you're just hoping for a market correction that would cause volatility to spike - that's not a short squeeze. Also, you should look into contango of the VIX futures. VXX is not a product you want to be long for very long due to the roll decay
Google Shopping Express Draws Closer [View article]
Why would google try and enter a similar business as AMZN with same day shipping and unlimited free shipping for members, when its obvious from AMZN's financial results that there's no margins in that type of business. Does the fees that google will collect on the service justify the margin compression?
"High above the Alps my Gnome is hearing a rumor that Apple will announce a stock split at tomorrow's shareholder meeting," tweets Doug Kass. The rumor has led Apple (AAPL +1%) shares to spike higher. Update (2:24 PM):Kass is using the post-rumor spike to sell part of his trading position in Apple. [View news story]
Slight margin compression and slowly revenue growth does not a broken company make.
"High above the Alps my Gnome is hearing a rumor that Apple will announce a stock split at tomorrow's shareholder meeting," tweets Doug Kass. The rumor has led Apple (AAPL +1%) shares to spike higher. Update (2:24 PM):Kass is using the post-rumor spike to sell part of his trading position in Apple. [View news story]
welcome to the world of investing gsterling. there's always someone that knows ahead of time.
Not sure if you've had any experience with ZIV, but it looks like its the less volatile brother to XIV. Haven't personally traded in it but have it on my watch list. Down about 1/3 the amount that XIV was today
I had XIV at $5 and sold too early and bought again at $15, same story there. One of these days I'll get in and hold for the long haul instead of booking 30-40% gains - which obviously are great, but hard not to play the what-if game when it continues much higher than the exit point
So, are you putting your money where your mouth is and going all-in? I think the markets have been looking for any bad news to sell off and the sequester and budget concerns are likely to put some downward pressure over the next two weeks. 3/4th largest VIX spike since 2005 is no 1-day thing. I can see XIV getting to 15-16 easily, which is where I'll try and scale in, unless new news surfaces (pos or neg)
VIX Contango Comet - Profitable Observations [View article]
The Bulletproof Case For Going Long On Volatility [View article]
The Bulletproof Case For Going Long On Volatility [View article]
Volatility ETFs Could Face A Short Squeeze [View article]
Then are plenty of well written articles about volatility products on seekingalpha. I would encourage you to read them before the roll decay eats away your position while you wait for a short squeeze to come to fruition.
Volatility ETFs Could Face A Short Squeeze [View article]
What other positions do you have? I'd like to take the opposite side of those trades.
Volatility ETFs Could Face A Short Squeeze [View article]
@Arshok - you're absolutely right. I had the misfortune of being long TVIX when it came unhinged. That was a bad week
Volatility ETFs Could Face A Short Squeeze [View article]
Why I Remain Bearish Despite The Cyclical Bull Rally [View article]
Google Shopping Express Draws Closer [View article]
"High above the Alps my Gnome is hearing a rumor that Apple will announce a stock split at tomorrow's shareholder meeting," tweets Doug Kass. The rumor has led Apple (AAPL +1%) shares to spike higher. Update (2:24 PM): Kass is using the post-rumor spike to sell part of his trading position in Apple. [View news story]
"High above the Alps my Gnome is hearing a rumor that Apple will announce a stock split at tomorrow's shareholder meeting," tweets Doug Kass. The rumor has led Apple (AAPL +1%) shares to spike higher. Update (2:24 PM): Kass is using the post-rumor spike to sell part of his trading position in Apple. [View news story]
Inverse VIX ETFs Rise 170% As Volatility Hits 5-Year Low [View article]
Inverse VIX ETFs Rise 170% As Volatility Hits 5-Year Low [View article]
Inverse VIX ETFs Rise 170% As Volatility Hits 5-Year Low [View article]
Inverse VIX ETFs Rise 170% As Volatility Hits 5-Year Low [View article]