Too bad everyone didn’t read the fucking prospectus. I bet some of you swing traders out there are trading stocks today. Before doing so, you better go read those prospecti — for you never know what you’re gonna find inside.
Here’s Cramer finding it interesting that such a devilish instrument, such as XIV, exists.
Let this be a lesson to all of you out there, courtesy of Credit Suisse. Do your homework next time, else end up with zero assets in your brokerage account.
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I work a full time job. I snuck in at the end of the day and bought a grip of XIV, deciding I wanted to bet that volatility would subside and the market would settle down a bit. Seemed like a decent idea, but I didn’t have the time to read the fucking papers that described how I would wake up this morning with my account totally blown the fuck up. What a fucking evil joke.
did the exact same thing; see below
Boi Cramer. Always the hero.
This is just the trigger. Domino’s to fall.
https://www.zerohedge.com/news/2018-02-06/was-just-start-risk-parity-ctas-are-process-selling-200-billion-equities
SVXY is now trading at $11
and….out of the pig SVXY at $11 and change. Salvaged $5k but lost $25k overnight. Sucks donkey balls. NAV on this is now listed at $3.96 so likely more downside from here…
A few exodus members warned about this in the infamous Pelican Room – I was super lucky yesterday to sell out of 1,000 shares $XIV for $104 about 15 minutes before market close. I did take losses as I was in $XIV from $120, but had enough puts on as a hedge to actually make a few grand in the account.
What tipped me was the big $VIX moves up to around $38 late in the day. I just decided to get out and reload – thinking I’d buy $XIV back later at lower prices. Sometimes is better to be lucky than good.
Cramer is a wallstreet @$$hole to the core. He’s the type of guy that either pre-buys before his longs are announced, or sells right after… Of course, he talks like a regular joe, so he suckers them in just like Trump
He’s an Eagles fan, that’s a clue right there.
Well, an Eagles fan is better than a Patriots fan. For a team that’s been around 60 year, it’s impossible to find a Patriots fan that know more than 2 starting from their team QBs (and most know only 1).
Here is the thing I don’t see anyone address, I think probably just because all of the contract language/clause is obfuscating what really happened. Someone(s) with a ton of money and knowledge of the ETN termination clause purposely and specifically moved the volatility markets with the specific goal to trigger these clauses at the very easiest time to pull it off, as well as the time that would help cover what was really happening (e.g., it was not a ‘rebalance’ that was the problem it was the price manipulation targeting an inherent weakness of the trading vehicle). Whether or not it was foreseeable, or whether or not such trading vehicles should be banned are probably legitimate questions, as well as liability questions, which I’m sure many attorneys are already looking at.
So many people had no clue what they were buying. Anyone that religiously reads zerohedge knew about the termination clause last year. For once they provided an edge to their readers. LOL
Let’s be honest here. If everyone who bought XIV had read the prospectus, it wouldn’t have changed a thing. This type of event has never happened before and, even if buyers read of that possibility, their behavior wouldn’t have changed.
The truth is, all 10K’s have some language to the effect that “past performance is no guarantee of future performance and you could lose all of your money by morning…”
It gets the issuer off the hook if something unusual happens (extra Lehman).
Did you buy your shitcoins today, Fly?
After 8 years Cramer is now admitting this government approved hack shouldnt exist? Everything was peaches and cream when everybody was making money easier than bitconnect Carlos until it broke down. It should never been allowed to exist. It is not an investment or equity. Its a gamble / hedge and it after analyzing it for years it makes less sense to me than bitconnect.