Massive VXX implosion is possible today

Quote from atticus:

We've just begun to see index vol. No way we trade to 20 into the holidays. I can do better, but that Dec 18/20 put spread at $0.65 is a massive short.
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Lol...let's just say 50 spot before 20 is looking more and more plausable...but things do change fast!
 
Bought XIV this morning. WHEN will it bottom out! Very fustrating, I wonder if I'll loose so much money waiting for this bottom this week that I won't make anything :(
 
Quote from sellindexvol66:

Hint: if spot vix is above front futures , the futures based products will not go down.
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sell, is that always the case? for example spot at 42 front future at 33. if spot gaps down to 34 due to rally. will the future remain around 33 ALL the time. or is it more market condition specific and sometime they will also gap down to the 20s. thx
 
Quote from newguy05:

sell, is that always the case? for example spot at 42 front future at 33. if spot gaps down to 34 due to rally. will the future remain around 33 ALL the time. or is it more market condition specific and sometime they will also gap down to the 20s. thx
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SIV means that the futures are inclined to narrow the spread as futures = spot at expiration. Of course the futures will drop with a drop in cash. Suppose the VIX cash is 700bp over futures and VIX cash drops $2.50 by the end of the trading session... the front month will conceivably drop a $1 or so.
 
Quote from GordonTheGekko:

Bought XIV this morning. WHEN will it bottom out! Very fustrating, I wonder if I'll loose so much money waiting for this bottom this week that I won't make anything :(
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Why not wait until it gives some tick of a heartbeat before jumping in? You can save yourself a ton of cash by not trying to be the guy who buys the exact bottom. At least let it make one day where it doesn't break a previous low so you have some reasonable idea of a possible support level rather than trying to guess.
Bottom fishing always looks like a bargain, but there's usually a reason things are in the bargain bin in the first place.
My $0.02.
 
Thanks for the input I'll probably get burned yet again. I owned tvix during the downgrade - should've not been deterred by that stupid nonsense rally Monday AM.
 
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