XIV Behaviour

Discussion in 'General Discussion' started by maxtodorov, Feb 5, 2018.

  1. maxtodorov

    maxtodorov Well-Known Member

    XIV did something super strange. I bought tiny position into the close at $97. (small bet on VIX drop, assuming this will turn around) Seems right after the bell, it fell thru the floor. (the Vix was already in high 30ties) What would cause it to drop so little during the day, only to fall thru the floor immediately after the close?
     
  2. maxtodorov

    maxtodorov Well-Known Member

    I think, its because futures seem to keep falling.... so its just reflecting VIX going further.....
     
  3. garyw

    garyw Well-Known Member

    Hm... SVXY and XIV were expected (by me) to move in similar %, but today, the change rate off by a factor of 2. -- Seems someone is not minding the store?
     
  4. maxtodorov

    maxtodorov Well-Known Member

    Its pretty crazy... XIV is now $20. Not sure what is going on.... seems to rapid of decline after hours, considering it behaved normal most of the day.
     
  5. maxtodorov

    maxtodorov Well-Known Member

  6. garyw

    garyw Well-Known Member

  7. KiwiDon

    KiwiDon Well-Known Member

    Unfortunately for XIV holders it seems accurate....more background here: https://sixfigureinvesting.com/2011/06/ivo-and-xiv-termination-events/

    But the NAV is now down near $4:

    xiv ending.JPG
     
  8. PK

    PK Well-Known Member

  9. Lifeson

    Lifeson Member

    Last edited: Feb 6, 2018
  10. Jack

    Jack Well-Known Member

    XIV has imploded due to huge volatility changes. According to Credit Suisse, XIV will stop trading on Feb 20 at a closing value of $4.22. It was trading at $132 a few days ago and lost 92% between yesterday and this morning. Very unfortunate.
     
  11. garyw

    garyw Well-Known Member

    my beer talking: I'm hopeful (but not confident) SVXY {or a similar product} will update their prospectus and implementation, to make the product more robust. (a product design that allows it to go negative with liquidity issues, seems to have opportunities for improvement in its construction) -- However, in their behalf, they do state the product is not meant as a longer term holding.
     
  12. DanN

    DanN Member

    I bot XIV @99.68 2days ago and sold to close today at 6.62. Fastest loss of this degree ever in over 3 decades of personal trading.
     
  13. Sanjeev B

    Sanjeev B Active Member

    Tough luck
     

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