Replies to post #1680 on Direxion Daily Financial Bull 3X Shares (FAS)

[Porgie Tirebiter]

Volatility. The VIX was up 10% during the day and then closed back down around where it had opened.

RIFIN fell during the first half of the day, while volatility was spiking. Volatility rising makes the value of the swaps in FAZ rise. The big players bid up the value of the swaps looking for insurance.

FAS and FAS are hedge plays. They each have their own bid-ask and can be moved independently of the underlying RIFIN index depending on demand.

This morning they will be adjusted to reflect 3X on the RIFIN. But fast moving volatility can certainly make them move independently of each other.