XIV termination event?

[KeLo]

XIV, SVXY Halted, News Pending
https://www.zerohedge.com/news/2018-02-06/xiv-svxy-halted-news-pending

 

[Equalizer]

XIV, SVXY Halted, News Pending
https://www.zerohedge.com/news/2018-02-06/xiv-svxy-halted-news-pending

XIV and SVXY most likely gonskies!

But why ZIV? Wouldn't a ZIV termination event require like a 400% spike in vol?

 

[cole_]

the real question is why did the VIX make such a move? there's no reason for it

 

[cole_]

why would buying of the vix futures cause real volatility in stocks?

 

[spread'em]

This twitter thread outlines the mechanics of the XIV in simple terms:

https://twitter.com/x/status/960836644873162753

Essentially inverse ETF's are worthless long-term investments and should not be used by retail customers.

 

[Equalizer]

the real question is why did the VIX make such a move? there's no reason for it

The yuuuge UX front end backwardation suggests hedging of short term moves.

 

[Equalizer]

why would buying of the vix futures cause real volatility in stocks?

a) Because sometimes the tail wags the dog
b) IV-RV spread can widen, i.e., higher IV does not necessarily mean higher RV.

 

[Equalizer]

XIV gone. CS announced acceleration event. A lesson for all picking nickels in front of steamrollers.

 

[just_numbers2014]

Seriously, could happen.

What a way to clean house though. Maybe someone hated the retail VIX traders and decided to clean them out. Engineer massive drop. Then engineer massive rally. Short VIX ETN goes first. Then long VIX ETN goes after. All gone like you say.

Wow, UVXY just went from 30 to 15. Amazing. VXG8 & VXH8 both down over 30%... 20% to go.

 

[cole_]

XIVH is still trading