2x Long VIX Futures ETF (UVIX)

[DrContango]

Hey win:

I am sorry if I dissuaded you from your UVIX 5.77% lottery ticket today.

Since that gain will reverse itself soon, you might consider buying SVIX instead to capture most of that when those VIX futures retreat. (But beware of getting a K-1 in a taxable account).

Contango remains healthy:
http://vixcentral.com/

Here’s some food for thought from Fido:

https://www.fidelity.com/learning-center/investment-products/etf/alternative-etfs-vix


As for your FOMO of a 700% gain, please look at it this way.

Perhaps in the next year there might be a Black Swan event with that orgasmic 700% gain. Extremely unlikely. Let’s say in 7 years instead.

So you speculate $15000 of your kid’s college fund hoping to make a kewl million. And in 7 years, UVIX pops 700%!!!

Most likely by then, that $15000 “investment” will be worth, perhaps, $50 and after than windfall might be worth $400, if you are lucky.

That said, the best way to end up with a million dollar account with UVIX/UVXY would be to start with two million dollars…


Doc