XIV and SVXY: possible liquidation by issuer

[jimmyjazz]

What's the best (free) site for tracking legitimate pricing after hours? I'm sick of yahoo!.

 

[S2007S]

Based on a beta of -0.46 to the VIX Index, the VIX would have to increase 217.4% in a single trading day for XIV and SVXY to fall to $0. For XIV to fall 80%, the VIX would have to increase by 173.9% in a single trading day. These figures are hypothetical and based on the historical betas of XIV and SVXY.

https://www.projectoption.com/xiv-svxy-falling-to-zero/

 

[srinir]

What's the best (free) site for tracking legitimate pricing after hours? I'm sick of yahoo!.

https://www.investing.com/indices/indices-futures

 

[m22au]

"Volatility Jump Has Traders Asking About VIX Note Poison Pill"
https://www.bloomberg.com/news/arti...-traders-asking-about-poison-pill-in-vix-note

Nicole Sharp, a spokeswoman for the note’s sponsor, Credit Suisse AG’s VelocityShares, said in an emailed statement that
“The XIV ETN activity is reflective of today’s market volatility. There is no material impact to Credit Suisse.”
She didn’t elaborate on the fate of the product.

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[m22au]

VelocityShares web site for XIV
http://www.velocitysharesetns.com/xiv

14,993,883 ETNs outstanding

"Closing indicative value" listed as $4.22, which matches the figures seen by traders on Bloomberg and IBKR.

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XIV and ZIV halted pending news: code T1
http://www.nasdaqtrader.com/trader.aspx?id=tradehalts

http://www.velocitysharesetns.com/newsroom

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[m22au]

XIV and ZIV halted pending news: code T1
SVXY also halted pending news: code T1
http://www.nasdaqtrader.com/trader.aspx?id=tradehalts

VelocityShares (XIV and ZIV)
http://www.velocitysharesetns.com/newsroom

ProShares (SVXY)
http://www.proshares.com/news/press.html

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[beefcaketrade]

What happens to long & short option holders of these products if they are 'terminated'?

What value do you base on in terms of determining P&L or assignment risk? Just assume they are $0?

 

[m22au]

What happens to long & short option holders of these products if they are 'terminated'?

What value do you base on in terms of determining P&L or assignment risk? Just assume they are $0?

It's likely to be the same as any other stock that is cancelled. Calls are not exercised. Puts are exercised and the put holder delivers zero/nothing to the put seller.

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[beefcaketrade]

It's likely to be the same as any other stock that is cancelled. Calls are not exercised. Puts are exercised and the put holder delivers zero/nothing to the put seller.

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The value of the strike of the put still matters though right?

If someone sold say a naked $50 put on the XIV, he gets ~$5K loss?

If someone sold a short $50 long $30 put credit spread, then he loses ~$2K?

Also, is it still autoassignment of options if the underlying delists? Assuming none of those stocks are going to trade again starting today, that means options market closed too and you're locked in right away?

 

[S2007S]

Amazing....you can't short VXX .....simply Fu©king amazing.....

I tried in 2 sepersep accounts...

That is literally free money after the vix collapses!!!!