VelocityShares Credit Suisse 3X Long Crude ETN (UWTIF)

[future1]

While that should be the case, All you have to do is look at price movements. When UWTI is valued at a higher price, the price swings are much greater. as the price gets driven lower the swings become smaller as people are starting to believe it is reaching support levels.

Between 3&4 dollars a share, 30-40 cent swings in each direction are common. As the price got closer to $1 swings would be closer to 10 cents.


If the reverse split takes the price back to $4 those same swings will again begin to widen out simply because that's how those that move this ETN know they can move it. It's harder to short a play at around $1 than it is when it's trading at $4.

A reverse split technically has no change in value on any stock.(or ETN) As you mention the price multiplies by the same rate the split is done at. It's more a matter of opportunity and perception.