What Happened To TVIX Today?

[PHOENIX TRADING]

Quote from lwlee:

The underlying index is TVIXIV. Anyone trading this thing should have kept a very close watch on that index. If you didn't you weren't paying enough attention, especially for such a dangerous leveraged product. The divergence was very apparent before the thing imploded.

I have a friend who's too stubborn to get out even tho he's in at around 16. We always have arguments about stop-loss and risk management. It's unfortunate it had to get to this.

The indicative value is not the same as "the underlying".

One implies causation the other does not.

The underlying of tvix is the action of vix futures.

 

[lwlee]

The numbers were so out of whack, it should have been a big RED flag for anyone trading this thing. More aggressive traders may have played the divergence to converge but most traders should have waited on the sidelines and found out what was going on.

Quote from PHOENIX TRADING:

The indicative value is not the same as "the underlying".

One implies causation the other does not.

The underlying of tvix is the action of vix futures.

 

[PHOENIX TRADING]

Quote from lwlee:

The numbers were so out of whack, it should have been a big RED flag for anyone trading this thing. More aggressive traders may have played the divergence to converge but most traders should have waited on the sidelines and found out what was going on.

Yes it's important but to let people think tvix.iv is the underlying is just plain wrong.
Think of tvix.iv as fair value.