ProShares Trust Ultra VIX Short Term Futures ETF (UVXY)

[Toofuzzy]

HI tmorr55

SVXY end up being inverse s+p 500 but that is just an effect. It is really inverse VIX.

Contango has nothing to do with the security going up or down, it has to do with the futures contracts it has to buy.

If the father out months are higher the VIX is in contango and uvxy has a headwind cost when they have to roll. It is an advantage to SVXY. Backwardzation is the reverse, further out months cheaper. If VIX was 90 the expectation would be it will be lower and in Backwardzation. UVXY would be thru the roof, SVXY would be low but the Backwardzation would be a headwind to SVXY and wouldn't rise as much as you would think as the VIX falls back to a normal range.

Toofuzzy