Explaining Inverse and Leveraged ETFs [View article]
Nice work Balaji.
My question is if volatility decreases (say VIX falls to 15) does that reverse decay (and create a positive Theta) for both DIG and DUG causing a loss on both bositions, or would it minimize decay toward zero?
In effect approaching zero volatility implies zero or positive Theta.
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Latest | Highest ratedExplaining Inverse and Leveraged ETFs [View article]
My question is if volatility decreases (say VIX falls to 15) does that reverse decay (and create a positive Theta) for both DIG and DUG causing a loss on both bositions, or would it minimize decay toward zero?
In effect approaching zero volatility implies zero or positive Theta.
Thanks much.
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The public can offer the FCC feedback on the Inquiry through December 9. The docket number is 08-172.
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