ProShares Short VIX Short Term Futures ETF (SVXY)

[T-R1]

I doubt it will get there at all. This is becoming one boring ETF to even follow (not even talking about holding).

[mammum222]

Erik, but now it will go very slowly up to 50 because leverage is now -0.5 to VIX. I also have an average around 60. (300shares)

[T-R1]

That sucks for sure because this was a really nice $$ maker.
Certainly have to readjust my strategy somehow because it's not "easy" money anymore. I mean, it's still "easy" but not as profitable

[eric4x]

BOUGHT SVXY, MARKET PRICE, $11.55*

The order went through on Friday at 9:58:29 am, for $11.5545*

My average price per share is under $50! Wow!

[Investorr]

Credit Suisse was not effected. They were fully leveraged. They had $5 Billion long and $5 Billion short. They rebalanced at 4pm on Feb. 15th and when they rebalanced it killed everyone.

[foreontee]

So the drop to 12$ all the way back to early February from the 100+ price was not caused by a split? I have not followed these futures for a while so Iwas suprised to see this. Glad CREDIT Suisse took it up the chute though.. Sad for the regular Joes took such a hit..

[Marketwise]

IMO, now with lowered risk in both VIX ETFs - they could just turn out to be more fun to trade than before the reduction for the patient and discerning trader. Always trade on the side where the contango is least (or absent all together) and never get overly aggressive on any trade. Reason and discernment must trump all emotions or find something else to do other than VIX trading....GLTU....:)

[mammum222]

yeah, it was sexy, but only on calm markets...

[FreezeThese]

Volatility was precisely what made the products sexy ... because they never foresaw XIV folding, SVXY gets waxed, and their shorts on UVXY went belly up they want to unwind what was, protect investors? Doesn't smell right.

Fun while it lasted ... I s'pose

[mammum222]

It is very good message that they cut leverage. We have more space to breathe with VIX in single day! What do you thing?

[ogflee1]

FYI: re UVXY/SVXY

"ProShare Capital Management has cut leverage on two volatility-tracking funds, one that bet on volatility remaining low and the other that magnified volatility's moves.

Observers say the move is an attempt to keep the products alive because volatility is still seen as an investable asset."

Firm swoops in to ensure volatility is a trade for another day
https://www.cnbc.com/2018/02/27/firm-swoops-in-to-ensure-volatility-is-a-trade-for-another-day.html

[T-R1]

I have no idea what you are talking about

[Marketwise]

Strategies work...until they stop working...2018 will mark a shift in sentiment; a different kind of year for the VIX than recent years...Personally, I have already made back about 2/3 of my loss in SVXY through - you guessed it - UVXY...Going to be an interesting year...Don't get married to or locked into one trading strategy...Discern where the best opportunities actually are and make the necessary adjustments. Those who do; who stay humble and flexible and are willing to learn are the ones who snap back the fastest and profit in the long run...GLTA here...

[Work Harder]

Nope see my mystery trader post

Basically the fella is a year out

Can't make up his losses or break even

w/o a crash

Elevated Vix @ best

Probably above 9.99 so

Fella needs to do more

[T-R1]

The price is absolutely irrelevant.
VIX went up like 100% in one day so inverse securities got wiped out. It's a one time event - basically a "reset" so to speak. Any price until this event is irrelevant.
It's basically as if SVXY is a brand new ETF.

But from here you can extrapolate where it might go %-wise if similar conditions (calm market) come back.

[amc]

Doesn't make sense why it would be this low though, hasn't been this low in years, I think it's an overreaction.

[Toofuzzy]

Boomer

VIX is still in backwardation. As long as that is the case there is a lot of pressure holding the price of SVXY down.

Toofuzzy

[amc]

I expected this recover more than it has. Crazy that this dropped so much and has only recovered a couple dollars.

[jeffree]

both March and April are in the 17's..with April a bit the lower of the 2...(look at the spot VIX)
VXX still in backwardization...and Could remain so...for longer than some think...especially if the markets get another "shock" next week...
Lots of T-bonds to be auctioned midweek...

I might be wrong, but I allowed my Feb $12 covered calls to be sold...and bought back my UVXY covered calls...
We'll see...
VIX "products" are difficult...especially with the recent "fiasco" (manipulation??!)...


GL



...jk...

[FatStrat]

Historic data, exactly. Looking at the long term chart I don't think one needs to know every little nook and cranny about it to see that when the markets are calm/rising, it does ok.

"Seems" like things are calmer now and this should be a little higher but it ain't. But I've got time.

[amc]

It's being heavily manipulated.

[T-R1]

It's simply following volatility. Let volatility settle (and it will) and we should see steady 1-4% daily gains. I'm in no rush.

[amc]

I expected this be up more with the markets rebounding some this week.

[T-R1]

http://www.vixcentral.com/

It's drifting in/out of contango so IMO it's a decent hold because sooner or later it should be comfortably in contango.
That's just my opinion though... based on historic data. I'm in from mid 10s and low 11s and holding.

[37thirtyseven37]

Open loss is scary. I don’t mess with that. If I were to sell options I would make sure I own the stock to cover first and foremost. Ergo, I am not the right person to give you advice at this point since I don’t naked short or create options to sell. Sorry mate.

I only buy or sell already created options.

[FatStrat]

No time for games, got a life. Have a good one.

[Toofuzzy]

fatstrat

First answer , Why did you buy it?

[FatStrat]

10/4, I'm in a tiny bit @ 11.61, what should I do?

[T-R1]

Don't touch it if your understanding of contango/backwardation = BS

[FatStrat]

This mofo be broken. Vix futures backwardation contagoBS what the phuk ever lol. She's a broke!

[Toofuzzy]

Mammum

First off you should NEVER trade options ever again nor trade volatility products because you have no understanding of risk.

My personal life lesson was starting to invest at 20 in only one stock, buying some on margin, selling some options, and at age 30 having 7 times my income in one stock that went from 60 to 30 overnight when it cut its dividend and wiped out 80% of my equity. I then switched to diversified mutual funds. Now I use ETFs.

You have had a similar learning experience.

Toofuzzy

[Toofuzzy]

37

I think he sold the puts.

I really wish people knew how to write about their positions clearly.

Toofuzzy

[mammum222]

No, I sold put options at the end of January on that strike price. Thats mean they are ITM and I am in open loss now.

[37thirtyseven37]

Oh I see what your saying... you purchased them at $8500 each average price?

And now they are worth less than that?

[37thirtyseven37]

If you bought SVXY PUT options at $70 and $100 strike price that means you thought the stock was going to go below those. It’s at $10-12 this week. You should sell those for $5800-$8500 per each option. Or cash in the option and sell each one for 100 shares at those prices and then buy the stock back for $12.

Why would you not have already sold those? SVXY isn’t going to drop much more and if you are waiting for it to drop the final $10 greed runs too high my friend.

Now if you bought CALL options to hit $70, those are worthless. And it’s not worth averaging down but just starting over.

[mammum222]

Guys, I have put options on strikes 100 and 70 what will expire in mid March. I know I will have assigned 200shares with average price 85. Do you thing is good idea to reduce an average to 63 by buying 100 shares right now?

[37thirtyseven37]

I’ve never seen a more broken chart then SVXY 5 year. Damn what a cold shoulder.

So bummed I bought FAZ and FAS against the market instead of SVXY puts like I originally was going to do.

[37thirtyseven37]

Haha. I literally laughed out loud at this one. I’m so sorry mate. That’s horrible. I’m 99.9% certain this won’t rise to that level by March. Lol.

But man I was not expecting that comment scrolling through these. Although I know that feeling.

[RTMidgetman]

well, it only needs to rise to $145 by March so my calls don't expire worthless... XD

[castboy]

This is benchmarked to VXX futures so the harder they fall the faster SVXY rises

[amc]

Moving easier now, not sure what was holding it down earlier.

[amc]

Rumor out there that the VIX has been manipulated, going to be interesting to see what kind of correction we see now that things are being looked into.

[amc]

Why is it so hard for this thing to move? The VIX is down almost 6 and this can barely move a dollar?

[amc]

Going to break today's high shortly

[T-R1]

Backwardation is almost depleted

http://www.vixcentral.com

[amc]

The VIX is going down, good sign that this is going to rebound some.

[amc]

I'm loaded here now :)

[amc]

I wouldn't buy this until you see inflation numbers tomorrow.

[buysell101]

Wow...what happened here?

[Toofuzzy]

Why should they?

Long bond yields are not as volatile as short yields either.

The expectation is for VIX to revert to the mean so futures will be higher when VIX is low and lower when VIX is high.

Toofuzzy