Ones that are still holiding XIV or SVXY will have major losses and will probably cease to exist.
Others will re-adjust. There are other volatility related ETFs.
When VIX drops a bit and things settle down, some of us will be looking for something to buy. I’d rather not have to sell short VXX or UVXY.
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C2 might be out of subs soon, everyone lost all their money.
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Now that would be sad! C2 had the right idea but executed this incorrectly. There should have been more quality assurance done and risk assessment. Also, developers are not prescreened and investors not made aware of the risks involved in each strategy.
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I was talking in part about the 15% of my personal assets that I devote to Volatility and other high-risk trades. Almost all of that is now parked in AMZN bought recently and UVXY call spreads bought months ago.
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I know this thread is no longer valid, but does anyone else feel like XIV was forcefully pushed into liquidation here and that the absurd premium it was trading at the last couple of days was a precursor to all of this?
I find this all quite mysterious.
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More interesting is that Credit Suisse held over 30% and stated that they were completely hedged.
@TestAccount123: It does feel mysterious, but that’s my lens; I’ve seen too many actual conspiracies in my life lately to not feel that way when something smells even a bit fishy. So I wouldn’t be too surprised whatever way the mystery plays out.
@TopplingGoliath: As for Credit Suisse, they knew the risk. If I ran XIV and had to hold substantial shares for regulatory or other reason, I would certainly have found a way to be hedged too! Real shareholder take the risks, not Credit Suisse (I would think).
Yes, agree that something was fishy. It wasn’t tracking its IV accurately for weeks. I think they wanted to shut it down. The trade was getting too popular and exposing risks that were realized.
ZIV held up pretty well compared to the others
