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I am trying to understand how the uptick rule works. XIV closed at 129.35 on Feb-1-2018 and 115.55 on Feb-2-2018, a 10.7% drop. The SEC https://www.sec.gov/news/press/2010/2010-26.htm says this: "The alternative uptick rule (Rule 201) approved today imposes restrictions on short selling only...

As a Merrill Edge client I have access to BOAML's equity derivatives research. In a Feb 6 2018 report they (Benjamin Bowler et al) wrote this: "A “Minsky Moment” for the VIX As noted in our 2018 Outlook, while we did not see short volatility positioning as large enough or levered enough to...

I have considered this strategy and would not rule it out. But remember that we have been in a bull market since March 2009. Shorting VXX means you are effectively long the S&P 500. Have you made more money than if you had been long the equivalent in e-mini S&P futures?

VIX futures closed artificially high at 4:15pm on Monday because of the trading that the managers of XIV and SVXY did. I think that when you are managing an ETF or ETN and you have become so big that your own trading may cause your investors to suffer an almost 100% loss, that you should try to...

Morningstar publishes historical returns, volatilities, and Sharpe ratios for ETFs and ETNs. The data for the 5 years through 2018-01-31, before the XIV crash, are below. As measured by the Sharpe ratio, and even more so by the Sortino ratio, the SPY was considerably better than XIV in...

Even though spot VIX was low in 2017 and early this year, the carry from shorting VIX futures remained high, because the VIX futures term structure was in steep contango. Often about 10% a month. I did have a few $100K in XIV. I was lucky enough to get out of XIV at about 100 (the liquidation...

I mean "too big" relative to the overall size of the VIX futures market. A small double long ETF that needs to buy 1,000 shares at the close when the usual closing volume is 100,000 shares is not a problem. But if it needs to trade more shares than are usually transacted at the close, it will...

A short ETF or ETN is inherently leveraged. When the underlying rises, it must buy back some shorts to prevent the exposure from being more negative than -100%. I think XIV and SVXY were crushed because their own anticipated buying demand for VIX futures pushed the VIX futures to artificially...

XIV.IV , the "fair value" of XIV, is reported on IB Trader Workstation as 4.22. I think this means that XIV will be terminated, but I could be wrong.

I think the OP is being ironic. SVXY is also down big after hours. SPY is down "only" another 1.2%. I don't understand the price action.

I think you can buy XIV, but it is trading at such a large premium to fair value that buying SVXY instead makes more sense if you want to be synthetically short VIX futures.

A minute ago, according to my IB Trader Workstation, XIV and XIV.IV were 100.35 and 75.05, meaning a 33.7% premium! I see XIV down 14% vs. SVXY down 20% today. These are big dislocations. What is going on?

Today (Jan 26) the SPY was up 1.15% but XIV fell 0.64%, again departing from the usual positive correlation. Here is an article from Reuters on this topic. https://finance.yahoo.com/news/u-stocks-vix-dance-tandem-break-history-210658736--sector.html U.S. stocks, VIX dance in tandem in break...

Today the WSJ has an article on this topic: https://blogs.wsj.com/moneybeat/2018/01/26/is-volatility-back/ Is Volatility Back? In an unusual occurrence, the VIX has moved the same direction as the S&P 500 on over half of trading days this month By Gunjan Banerji Jan 26, 2018 8:39 am ET ... In...

Interesting explanation, thanks. But the correlation of VIX and SPX changes is about -80%, so usually SPX increases are accompanied by VIX drops. Why is the effect you suggest stronger now than it usually is?

XIV did great in 2017, but so far this year it has greatly underperformed what a 3-4 beta to the S&P 500 would predict. I though the prospect of a government shutdown was causing underperformance, but even with that averted, it has done poorly relatively considering the environment of low...

Regular trading in VIX futures ends at 4:15pm EST, 15 minutes later than for ETFs, so if futures prices move in that time, the returns measured from yesterday's close will differ for futures and ETFs.

The VIX is a measure of S&P 500 implied volatility, and Bitcoin is not in the S&P, so I don't understand your 2nd question.

I am tempted to short Bitcoin, but it is too volatile. I would think about buying Bitcoin put options -- when will they be listed? In the limit of infinite volatility, the value of a put option is the discounted value of the strike, so there may not be too much upside in Bitcoin put options...

On Interactive Brokers' Traders Workstation, I can create watchlists of related securities. How can I show the average return for the securities in a watchlist, using either TWS or some other trading software? I know that downloading data to a file and processing that data is possible but am...