XIV and SVXY Going to $0: What Would it Take? UPDATE: On February 5th, 2018, XIV and SVXY experienced substantial losses as a result of surging VIX futures prices in response to a sharp market decline. On 2/5/2018, XIV opened at $109.57 and SVXY opened at $100. On 2/6/2018, XIV opened at $10.49 and SVXY opened […]
What is XIV and How Does it Work?
XIV’s TerminationUPDATE: On February 5th, 2018, XIV and SVXY experienced substantial losses as a result of surging VIX futures prices in response to a sharp market decline. On 2/5/2018, XIV opened at $109.57 and SVXY opened at $100.On 2/6/2018, XIV opened at $10.49 and SVXY opened at $11.70. In response to the significant losses experienced […]
CBOE Volatility Index Guide: VXST, VIX, VXV, VXMT
CBOE Volatility Index Guide: VXST, VIX, VXV, VXMT The S&P 500 is the most-watched U.S. equity index among traders and investors around the world, as it is perhaps the best representation of the U.S. stock market. Not surprisingly, the options on the S&P 500 Index (SPX) are extremely active, as market participants can use SPX […]
Selling Strangles: Taking Profits vs. Taking Losses
Selling Strangles: Taking Profits vs. Taking Losses When starting out in trading, it’s entirely natural to focus on the profit side of the equation. However, losses in trading are inevitable, and keeping losses manageable is the key to long-term profitability.In this post, we’re going to compare two trading approaches and see which one has performed […]
Low VIX: The 15 Longest Streaks Since 1990
VIX Index Streaks: Closes Below 15 and 12.5 Since the U.S. Election of 2016, the S&P 500 has been on an absolute tear, up 10% in just over three months. Over the same period, S&P 500 implied volatility (the VIX Index) has fallen to extremely low levels. Here’s a graph of the two since November of […]
What Was VXX and How Did it Work?
What is VXX and How Does it Work? Important Note: On January 30th, 2019, VXX will reach its maturity date that was established when the ETN was first created. To take its place, Barclays launched VXXB, which is the long volatility ETN that will operate exactly the same as VXX, just under a different ticker […]