Absurd. There’s no way Direxion will liquidate their main products and just close itself. They don’t do anything else besides offering mostly leveraged ETFs, and are happy for their competitor to go away.
UGLD USLV DGLD DSLV UGAZ DGAZ ZIV VIIX TVIX soon to be delisted
- Thread starter betcashrun
- Start date
Absurd. There’s no way Direxion will liquidate their main products and just close itself. They don’t do anything else besides offering mostly leveraged ETFs, and are happy for their competitor to go away.
So, I actually have some TVIX shorted. Do I need to buy to cover? Or can I wait and just "cash out" my short at the end for its imputed value? I don't want to end up with a situation where I have a short and someone out there calls it then I have to go into the market and find a long to purchase, only there is not public trading so I have to buy from private Joe Schmoe somewhere for a 10x mark up or something crazy like that lol. Any ideas? Thanks!
It’s hard to tell but I’d say it would be safest to exit sooner than later, and possibly convert/switch to UVXY instead.
I’ve read somewhere that today TVIX was higher than it should be (higher than its NAV) as the issuer stopped new share creation so there was limited number of shares. But an opposite effect could happen once everyone rushes for the exit. Or basically anything can happen
It’s hard to tell but I’d say it would be safest to exit sooner than later, and possibly convert/switch to UVXY instead.
I’ve read somewhere that today TVIX was higher than it should be (higher than its NAV) as the issuer stopped new share creation so there was limited number of shares. But an opposite effect could happen once everyone rushes for the exit. Or basically anything can happen
I sold remaining shares this morning after seeing the news. Sad to see TVIX go, will be trading UVXY instead.
It’s hard to tell but I’d say it would be safest to exit sooner than later, and possibly convert/switch to UVXY instead.
I’ve read somewhere that today TVIX was higher than it should be (higher than its NAV) as the issuer stopped new share creation so there was limited number of shares. But an opposite effect could happen once everyone rushes for the exit. Or basically anything can happen
Thanks guru, it looks like new share creation for TVIX is not being stopped until early January. I would guess that its after that time when it should swing most erratically. Looks like there might be some process where you can have you shares redeemed at I would assume NAV (or whatever the functional equivalent is in the ETN world) by the issuer. I have some reading to do!
Do you mean July? They talk about July 2nd in the press release, so that’s only couple weeks:
“ the Nasdaq ETNs will continue to trade on The Nasdaq Stock Market up to and including July 2, 2020. The delisting of the ETNs will become effective on July 12, 2020. In addition, Credit Suisse AG will suspend further issuances of the NYSE ETNs effective June 22, 2020, and will suspend further issuances of the Nasdaq ETNs effective July 3, 2020.”
The main authority on TVIX who also mentioned share creation this morning, is Vance Harwood:
https://twitter.com/6_figure_invest/status/1275080739768287232
Yep, July 2nd guru. As long as they are letting people create new units until then, I see no reason it should deviate too too substantially from its intrensic price - market makers could stop in. I think anyways lol.
One can read in the Credit Suisse press release:
''Credit Suisse AG cannot predict with certainty what impact, if any, these events will have on the public trading price of the ETNs.''
In other terms the price of the ETNs could do anything.
Yes, just like the price of pretty much ANYTHING can do anything. My point is as long as the market makers can create new shares up until the 7/2 delisting then there is less worry about the ETN going way above its intrinsic value - the market makers would see the profit and create new shares, driving the price back down relative close to its intrinsic value. I'm all ears of there is a reason this will not likely happen! Thanks!
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NOT likely they do that, on the better volume etfs;
they did reduced a 3x oil related to 2x...……………………………………………………………………………………………..