VelocityShares Daily 2x VIX ST ETN (TVIX)

[gumbie05]

My take on this TVIX is that because it has options in it that can virtually go to zero this thing could literally fall right back below $1. This thing (like other short ETNs) have a history of doing REVERSE stock splits which makes one wonder why the SEC would even allow these. One thing is to hold short "common stock" positions which, if done correctly, could show relative strength in the face of small rallies (i.e. be up slightly or flat if the markets are up +0.5%). But not this POS! That's why I got yesterday at $6.57 after a slight loss after holding it for nearly two weeks! This is a VERY dangerous ETN in that it's only worth day trading it with very tight stops to avoid having this thing tank on you and have your trading capital $$ tied up. It's sort of like Chinese water torture! These ETNs should only be allowed to RS only once! After that- they should be forced to shut it down!
BTW- does anyone know if they're allowed to continuously keep "issuing" shares to raise the funds necessary to keep taking the positions they're taking (i.e. buying options)? If so, it's actually worst than holding a non-ending pink sheet printing press! If that's the case, I'd stay away from this with a ten foot pole!
- JMHO