XIV and SVXY: possible liquidation by issuer

beerntrading said:
XIV can't go down too much further...there's a hard floor in its way.

It does beg the question though. Who is left holding the bag if the short obligations actually do give the ETP a less than 0 value--for the fund itself?
More...



Should be interesting to see where it opens tomorrow...it's already down 80% after hours...never seen anything like that before....I read that the xiv was a very highly traded vehicle....I'm extremely tempted to buy but will hold out until tomorrow...if anything shorting volatility is going to be extremely profitable in the next few days!!
 
beerntrading said:
Everything has been insane today ATH--whole percentages below the day low in a lot of cases. Tomorrow it's gonna hit the fan.


I used that word today in a chat with other traders. This one looks real.


Your broker might moot that point and decide for you.
More...
The price of svxy is around 20usd, does svxy worth that price? Should I sell it out as early as possible?
 
S2007S said:
Should be interesting to see where it opens tomorrow...it's already down 80% after hours...never seen anything like that before....I read that the xiv was a very highly traded vehicle....I'm extremely tempted to buy but will hold out until tomorrow...if anything shorting volatility is going to be extremely profitable in the next few days!!
More...


Its tempting to short it but with the way algos work if the market gaps up 50 points tomorrow and all the other volatility instruments crater, XIV could open at 60 just cause of the arb that so many algos run, not worth the risk even though its most likely going to zero.
 
Termination event when down 80%. That's it for those two etf's.

Will it take other things down with it? We'll see.
 
beerntrading said:
XIV can't go down too much further...there's a hard floor in its way.

It does beg the question though. Who is left holding the bag if the short obligations actually do give the ETP a less than 0 value--for the fund itself?
More...

Possibly CS:

leftythrowinginside said:
Credit Suisse (xiv issuer) also down a lot in afterhours,,,don't want to sound batshit crazy but when's the last time someone said contagion?
More...

CS down 5% after hours
www.nasdaq.com/symbol/cs/after-hours

.
 
kiev said:
The price of svxy is around 20usd, does svxy worth that price? Should I sell it out as early as possible?
More...
It depends...it's really something you need to decide. I'm not clear in the inner workings of it, but it looks like you've already absorbed 80% of the downside, and it's possible this is panic that will not manifest during RTH...I'd have a clearer answer for you if I understood the product better.
 
You must log in or register to reply here.
Back
Top