again guys, avoid trading those VIX ETF's such as VXX and esp
TVIX ultra, they just are not good traders, I avoid then and they
are so volatile i.e. moving 10 - 20% is not uncommon, and a lot of
you just can't stomach those kind of moves unless you do a very
small position size
yep FIGO, I generally just don't trade TVIX unless for a quick
trade or day trade, I haven't had a lot of luck with it and it will
move 10% in the blink of an eye, too whippy for me
Trading TVIX is complicated. I don't understand it myself. But
what I do know is that TVIX is a pos for longs because it suffers
from a negative roll yield. It tracks the two front months of VIX
futures. Because the futures are trading at premiums, it suffers
from a negative roll yield. In short, you're losing money from this
negative roll yield if long. TVIX is best for daytrades or short
term trades. Not good for longer term trades unless everything
aligns just right like last August.
The article basically points out that TVIX was trading at a high
premium compared to its NAV. The article was written 10 days ago.
Since then, the premium has inflated exponentially more, so it was
even more dangerous to be long TVIX. Longs could see this premium
yanked out from under them like today. His point was that it was
risky to hold TVIX long at the time because it was trading at 9%
premium to its NAV.
TVIX: An Emerging Arbitrage Opportunity
Posted by kaap on 22nd of Mar 2012 at 12:11 pm
http://seekingalpha.com/article/428511-tvix-an-emerging-arbitrage-opportunity
Good reading regarding TVIX
does anyone understand why TVIX is down 16%!!!! help please
Posted by showjess on 22nd of Mar 2012 at 01:25 pm
again guys, avoid trading those
Posted by matt on 22nd of Mar 2012 at 02:26 pm
again guys, avoid trading those VIX ETF's such as VXX and esp TVIX ultra, they just are not good traders, I avoid then and they are so volatile i.e. moving 10 - 20% is not uncommon, and a lot of you just can't stomach those kind of moves unless you do a very small position size
SHOWJONES
Posted by FIGO on 22nd of Mar 2012 at 01:30 pm
HAVE YOU READ THIS SHOWJONES ?
Ask for Matt or Steve to help you
http://seekingalpha.com/article/428511-tvix-an-emerging-arbitrage-opportunity
yep FIGO, I generally just
Posted by matt on 22nd of Mar 2012 at 02:28 pm
yep FIGO, I generally just don't trade TVIX unless for a quick trade or day trade, I haven't had a lot of luck with it and it will move 10% in the blink of an eye, too whippy for me
Trading TVIX is complicated. I
Posted by cw12 on 22nd of Mar 2012 at 02:47 pm
Trading TVIX is complicated. I don't understand it myself. But what I do know is that TVIX is a pos for longs because it suffers from a negative roll yield. It tracks the two front months of VIX futures. Because the futures are trading at premiums, it suffers from a negative roll yield. In short, you're losing money from this negative roll yield if long. TVIX is best for daytrades or short term trades. Not good for longer term trades unless everything aligns just right like last August.
The article basically points out that TVIX was trading at a high premium compared to its NAV. The article was written 10 days ago. Since then, the premium has inflated exponentially more, so it was even more dangerous to be long TVIX. Longs could see this premium yanked out from under them like today. His point was that it was risky to hold TVIX long at the time because it was trading at 9% premium to its NAV.
TVIX
Posted by showjess on 22nd of Mar 2012 at 01:42 pm
I did and didn't understand anything!!!!
me to
Posted by honzer on 22nd of Mar 2012 at 01:42 pm
STAY AWAY FROM TVIX!
Posted by zach06 on 22nd of Mar 2012 at 01:57 pm
too late - now I need help deciding what to do here :(
Posted by showjess on 22nd of Mar 2012 at 02:00 pm
Close out, next trade!
Posted by steveo on 22nd of Mar 2012 at 03:53 pm
Close out, next trade!