+ Watch TVIX
on My Watchlist
Volatility tracking index. Contango in the futures markets doom these instruments to decay towards zero over long periods of time. See UVXY for real money short.
We are closing in on the time when TVIX will have to do another reverse split to continue trading. TVIX implemented a reverse split on December 21, 2012 issuing 10 shares for each one outstanding when it got down below $1.00; it then executed another 1:10 reverse split on August 30, 2013. I am surprised we haven't heard about the next one yet, but it shouldn't be too much longer.The volatility ETF's or ETN's (TVIX, TVIZ, VXX, UVXY, CVOL, VXZ, VIIX, VIXM, VIXY, XVZ and some others) are based on VIX futures - some short term, some longer term. When volatility is high, they will spike. However, that averages around 10% of the time over the course of a year and usually doesn't last long. When volatility is low, it costs the funds a great deal to continue to roll both the short term and longer term futures. When the longer term futures reflect more volatility than the shorter term futures (which is true about 90% of the time, the resulting phenomenon is called contango - TVIX will go down even if the vix stays static. The reverse is called backwardation - but is also usually short lived. In essence, each of these as long term investments are horrible - they WILL go to zero eventually. In fact, their design almost dictates that they do so. They are the safest short on the planet except for one thing - when the spikes in volatility occur, it is tough to maintain the shorts as the shares become extremely difficult to borrow. If one is over allocated, the margin requirements become severe. And there is a good chance that one's short can get closed out at the worst possible time.This is not a problem in the CAPS game. Each of these will go down in the long term - GUARANTEED
I am buying volatility due to it being so low. It is also a good market hedge.
following bb mavin. volatility bet. very safe short in the long run.
Real money trade via direct short.
Constant erosion from expenses make this an easy long-term short
Daily 2x VIX Short Term
Bought tvix long at 1.13/share on 4/24 friday
Futures-based ETFs in general are poor long term investments. 2X ones are even worse.
time to rumble!
Contago will ensure this loses value.
retest old lows
Contango, constant reverse splits
seems you can only compete with top CAPS if you short all the levered ETFs, so i'm capitulating and doing that.
Look to this stock as a safe bet against a United States Government Default
VXX is designed to go to zero. TVIX is 2X leveraged and sinking even faster
beefing up my score
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ratings and Key Statistics provided by Zacks.
SEC Filings and Insider Transactions provided by Edgar Online.
Powered and implemented by Interactive Data Managed Solutions. Terms & Conditions