Posted on 02/05/2018 3:58:48 PM PST by RinaseaofDs
As I write this, the VIX is down 87%. Termination event occurs at 80%. At 80%, the fund, essentially, goes away.
There are two VIX instruments with this sort of clause.
One fund is $500B. Are we going to wake up and find out a volatility fund, and all the investor cash, disappeared in a single day?
(Excerpt) Read more at forbes.com ...
10% down —notable, but who cares..?
1987 was 23% in a single day.
I hope it was all Soros money.
Was ‘ Vix’ targeted or something to fall so hard?
It looks to me like the VIX was up and the XIV went down. Can anyone else confirm this or am I looking at the wrong charts?
VIX is the CBOE Volatility Index
Yea, me too. Probably in reality, he’s short.
Ditto that........
XIV may have blown up. A Credit Suisse product. I don’t trade it and don’t know much about it terms of supplying accurate info. I’m just reporting what’s being rumored.
The “VIX down” story posted is from July 2017...the VIX spiked up big time today:
https://www.marketwatch.com/investing/index/vix/charts
I think the original poster is implying a “term. event” to the upside?? Not sure.
I would be foolish to take a bet where I have a 99% chance of winning $100, but a 1% chance of losing $20,000.
YOU would be foolish to offer me a bet where I have a 99% chance of winning $1million, but a 1% chance of losing $200million. I am almost certain to win $1million.
If I lose? I don't have $200million, talk to my bankruptcy attorney.
Counter-party risk is the risk that the other guy cannot pay off a losing bet.
Don’t know what VIX is, but if its an investment instrument I would be suspicious that somebody was using the mere 5% drop but scary number of of 1100 to hide some other wrongdoing with the fund.
More on “VIX effects”:
https://www.cnbc.com/2018/02/05/xiv-exchange-traded-security-linked-to-volatility-plummets-80-percent.html
My understanding is that the VIX is simply volatility. I don’t trade it myself. I trade individual stocks. Some were hit hard but I am diversified. My gold moved very little.
Link includes chart listing largest holders: Credit Suisse, Morgan Stanley, Citadel.
“An ETF betting against volatility may have left Credit Suisse with a more than $500 million loss.
It increasingly looks like the XIV ETF has blown up. It survived regular trading with about a 15% loss and a close at $99 but it appears it was liquidated afterwards, or some very funny business is going on.
It’s trading at around $15 after hours and a notice on the EFTs website said the net-asset value is just $4.22. If that’s all correct, it’s basically worthless. It’s a similar story in SVXY, which is a similar ETF from ProShares.
In the case of XIV, who has the losses? Here is a clue. Numbers published Sept 30 showed Credit Suisse holding nearly 5 million of the shares itself. Those would have been worth $550 million at the open and about $20 million now — a net loss of $530 million for the Swiss bank.”
I just confirmed that its gone. Terminated. I called my brothers to get them out of the market. One said their phones are ringing off the hook.
Asia will open soon I think. We’ll see what happens there.
Sounds oddly familiar, pulling the plug like 2007. Politically motivated again, too. Trump was worried about this during the election, and has restated that concern again today. I don’t know how anyone can avoid concluding that there’s a lot of corruption concealed by dark money and derivatives.
Tokyo opened 6 pm EST. Australia’s ASX had $53b wiped off by their midday, 3% of market cap.
http://www.abc.net.au/news/2018-02-06/asx-australian-share-market-plunges-3-pc/9400098
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