VelocityShares Daily 2x VIX ST ETN (TVIX)

[MJ moneymaker]

Yeah TVIX has stayed on that 60 line mostly due to contango. I'm not sure what you know about contango but it affects ETNs that are constantly rolling into a later futures contract as time progresses.

I am just starting to understand how it works. Contango affects ETNs like UGAZ UWTI and TVIX. It causes the ETN to decay in value. If you look at UGAZ vs natural gas prices over 2 years you'll see that UGAZ lost a crap ton. This is due to contango and geometric decay.

I'll save you the dissertation because I'm not well enough versed in the material to properly explain it. But all you really need to know about dhot60 as it relates to anything that tracks VIX or commodities is there's sort of a caveat with leveraged ETNs especially when the underlying asset futures are in contango, which VIX futures are most of the time. I always play ETNs like this that are DHOT60 with a tight stop loss.

If you wish to understand contango there is a guy whose alias is Dr. Contango. He is much smarter than I am and he linked to some videos that explain contango and backwardation. They're worth a watch if you trade leveraged ETNs frequently. I'll try and find the links and send them to you.

But yeah play TVIX with a stop loss. It's bitten me pretty badly before. That's the best I can do for now. Lol

Good luck and happy trading. I'll send you that link soon.