ProShares Trust Ultra VIX Short Term Futures ETF (UVXY)

[stingray113]

Here's every VXX yearly chart since 2009. I chose VXX since it was around years before UVXY. Remember though, VXX is 1x the change in VIX futures so it lacks the leverage decay of UVXY. Also, a VIX of 40 still wouldn't necessarily give you the $16 you seek. If you have to ask why, maybe you shouldn't be trading this. On a related note UVXY's NAV today closed at $7.07 (and it was trading even lower in AH), so I apologize for my "dismal record" of being a few days and 1% off. Just so you know we would now need a 126% increase to get to $16. Not impossible, but getting less and less likely every day.

2009:


2010:


2011:


2012:


2013:


After looking at those charts, please explain why you would advocate going long as a sustainable strategy? Even without understanding why this pattern will continue you've got to realize that volatility has incredible downward pressure.