ORIONS Money Stocks

[kajulie]

TVIX has been suggested since over $7 and it went to $6.30. That's what happens you you buy in Contango and sell in backwardation. Most of the time traders buy in Contango and sell in Contango for a loss. If you bought at 2.55 and sold at 6.15, you bought in backwardation and sold in backwardation. It's still in backwardation, but the VIX expires next Tue night. Betting on it now is betting for a crash before the close on Tue. Might happen and that would be a killer trade, but you could put a few bucks on a longshot at the horseraces and make the same amount. This is not a stay away post. If longshot trades are your thing then go for it! Taking risks are part of this biz and we have to be willing to do that from time to time. This is a post meant to educate the folks who are too lazy to learn about VIX products on their own. Most often the posts here on TVIX forget to mention the little details about the risk.