This fucker is down another 18% this morning. You do realize what happened here, don’t you?
SOMEONE HAS BEEN TRADING ON INSIDER KNOWLEDGE THAT CREDIT SUISSE WAS GOING TO ISSUE MORE SHARES. Hence, the ETN, which magically levitated well above its NAV for God knows how long, is reverting back to it now. There will be plenty of shares to short now. However, there were none available yesterday or months before it, so whoever has been shorting this fucker, yesterday and the day before, must’ve known new shares were coming to market; hence, someone should arrest them and toss them in gaol.
I am going to create a screening tool to track iNAV’s to current price for divergence. When I get the results, I will share it with you to point to potential red flags.
The market looks benign this morning. However, Europe is weak for a 5th day. In other words, we are in the midst of a correction. Do we buy it or avoid? That’s what makes a market and only one party can be right.
Top Pick: EXK
If you enjoy the content at iBankCoin, please follow us on Twitter
Makes one think twice about buying “ANY” ETF
TZA, UVXY, ERY, etc…
I really don’t understand how this was surprising.
UVXY and TVIX are supposed to track damn near the same thing, they are finally “normalizing.”
You are being ridiculous. How in the world was anyone supposed to know that new shares were to be released?
So they stopped issuing shares because they thought the TVIX was breaking the vx futures market.
The data certainly proved otherwise.
The only reason TVIX was outperforming UVXY was structural, not fundamental. To think that they wouldn’t eventually issue more seems a little… wrong.
This all is very similar to the bullshit that goes on with PSLV.
Short of the century!! What about NG fly?
I am making my new business solely and only shorting VXX. Its a can’t lose proposition.
NAV as of yesterday is 10% it’s current value
10%below
pricing in the effects of contango no doubt
Thanks Fly. The new feature would be much appreciated for those of us trading ETF’s. A field to screen for optionable would be helpful also. I’m avoiding any ETF’s that don’t have options in the future. $TVIX did not have any, I guess that should have been a red flag for the unwashed.
Senor, very off topic, I thought this Big Bach set of 120 songs for .99 on Amazon might be of interest, if not, carry on. Sorry, no time to shorten link.
http://www.amazon.com/Big-Bach-Set/dp/B007MS6D1I/ref=pd_ms_zgc_dmusic_digital_music_album_display_on_website_1?t=slickdeals&tag=slickdeals&ie=UTF8&s=dmusic&pf_rd_p=1292119942&pf_rd_s=right-6&pf_rd_t=101&pf_rd_i=163856011&pf_rd_m=ATVPDKIKX0DER&pf_rd_r=1ANBYTA3TPHXPD0MTQ1Z
I have all of Bach’s songs. Thnx
Traders have been getting ripped off since the S&L debacle of ’87. The problem now is the rip offs are becoming more frequent. As soon as Ben raises the rates even 1/2% folks will be running into MM’s and CD’s again.
And he knows it. It’s what keeps him up at night.
Posted in the wrong space but what the hell. EXK to the moon.
Pretty crazy. I bought that last week for the first time ever as a hedge. Got stopped out for a 10% loss and was fuming, but now I’m so very grateful. Never again will I ever purchase another VXX related product. There are so many better ways to skin that cat.
I did pretty much the same thing, but made it out the day before the crash with a tiny gain. Damn thing just wasn’t acting right.
People have become so accustomed to surreal nonsensical things in the market, they didn’t care about the TVIX share issuance problem.
2014 January 15 calls on VXX look somewhat tempting here. At $8 per contract one is paying very little in time premium. And one is also getting a very long time to wait for the next upside explosion in vol. Said upside explosion being a question only of when and not if.
As an aside, the Morningstar website says the NAV on VXX is $18.38 which is above it’s current trading price of $18.27 as of 10:37 Eastern time. Where does it say NAV is 10% below current price?
If you are doing that, why not buy the 2014 Jan 14 calls for $8 and sell the 2014 Jan 40 calls for $3 against them (for a spread).
If VXX is above 40 in Jan 2014, you collect
$34 each on you $5 investment.
If it is $25 you collect $11 each.
If it is unch from here you break even,
collecting your original $5.
Am I happy that I’ve avoided ever dealing with anything that has “VIX” on it, save for various chest rubs on rheumy wintery evenings?
Yes I am.
Am I happy that my Looeyville Cards beat the stuffing out of a very strong Michigan State Big Ten Conference winner and #1 seed?
You betcha.
But I may be most happy for the gift we received yesterday afternoon, and can take advantage of today…
________
Heresy! Consumer Reports says the best bagels are made by Dunkin’ Donuts, Lender’s Original and Costco. What kind of dogshit reporting is that? The best bagels in the world come from NYC. There’s zero tolerance for CR’s incompetance. Better they should drown in fake Brooklyn Water.
Rockaway Bagels are the best.
Seagirt Ave, I think.
________
Bagel Boss, Hicksville, NY bar none!
From an outsider of the financial world how the fuck are people’s greedy little hands not being cut off. I would also prefer the amputation be in public on Fridays via a guillotine.
Check out XIV it actually FEEDS on profits from the backwardation (contango) within the VIX futures markets which just kills VXX. It has become more liquid over the last 52 weeks and look at the YTD performance! However when things are rosy and turn bad it gets hammered when the VXX explodes when the contango goes in reverse. Use longer puts on the XIV for your hedge and it should be the best way to hedge. VXX/TVIX are a friggin unmitigated DISASTER!!!