For Monday after-hours traders, consider an XIV / SVXY pair trade. Today the XIV went down only half of SVXY. And the NAV values look screwy.
Experienced traders should consider buying SVXY and selling XIV. If they converge soon, the return could be more than 15%.
Not a recommendation, just an idea. I could, of course, have misunderstood something, so check for yourself.
BTW, at 4:20pm the bid/ask spreads are not too bad.
[UPDATE: At 5pm, the difference has disappeared. XIV has fallen 56% in the hour after the Monday 4pm close.]
Yeah I noticed this too. Not sure how long it will last, however it could also get worse. Remember when TVIX and UVXY had this going on? It widened to something like 40% before TVIX issued more shares or something and it immediately came back in.
Should come back in eventually, just a question of when, and how high your costs are to short.
XIV just dropped another 20% in the last 10 minutes, so the trade is fast disappearing. Still, at 4:30pm, SVXY is down 54%, while XIV is down 37%. At the 4pm close, XIV was down 14% while SVXY was down 32%.
[UPDATE: At 5pm, the difference has disappeared. XIV has fallen 56% in the hour after the Monday 4pm close.]
