Replies to post #25972 on VelocityShares Daily 2x VIX ST ETN (TVIX)

[weedresearch]

IT SURE LOOOKED LIKE THEY WERE SHORTING IT IN THE 3.30'S. WHY WOULD THEWY DO THAT AND NOT WAIT TILL 3.60?


WAS THAT A SHORT COVER RALLY?

SORRY FOR THE CAPS.

[jockinmikeg]

VIX based on call/put action on SPY and not directly correlated to intraday SPY movement.

[RainerRocks]

"Wholesalers called “Authorized Participants” (APs) will at times intervene in the market if the trading value of TVIX diverges too much from the IV value. If TVIX is trading enough below the IV value they start buying large blocks of TVIX—which tends to drive the price up, and if it’s trading above they will short TVIX. The APs have an agreement with Credit Suisse that allows them to do these restorative maneuvers at a profit, so they are highly motivated to keep TVIX’s tracking in good shape."

http://sixfigureinvesting.com/2015/10/how-does-tvix-work/

Visit link for more eye opening reading.