T*********s
发帖数: 17839 | 1 February 23, 2012, 1:29 P.M. ET
By Brendan Conway
Investors who follow the gaggle of complex leveraged products tied to the
CBOE Volatility Index know that a popular one backed by Credit Suisse (CS)
stopped issuing new shares this week after a trading surge triggered the
investment bank’s “internal limits.” All signs suggest that running and
hedging this corner of the burgeoning market for volatility trading vehicles
simply got to be a bigger task than CS originally envisioned.
Thursday, there’s a battle playing out for control of the existing shares
in the product, the VelocityShares Daily 2x VIX Short Term ETN (TVIX). In a
rarity for exchange-traded funds and notes, TVIX is currently trading at
about 16% above the intraday indicative value, according to FactSet Research
Systems. This morning, it was 13% above those levels, according to Bill
Luby at VIX and More. That’s what happens when demand outstrips supply, as
is often seen in sleepier markets like closed-end funds.
It’s just one more lesson on why non-experts should probably steer clear of
this young and burgeoning volatility-trading market. Much as investors want
hedges and want to trade products tied to the VIX, it’s simply a very
complex and constantly evolving place to be.
Though the TVIX suspension is supposed to be temporary, there’s already a
similar vehicle that appears to be grabbing a slew of the fast money that
last week would have targeted TVIX. Its mouthful of a name is the ProShares
Ultra VIX Short-Term Futures ETF (UVXY). This four month-old fund has a
chart that mirrors the product whose share creation has been halted. It
entered the session with just $26 million in assets compared to $648 million
in TVIX. But that was probably a function of traders’ preference for
swimming in the same big pool.
With the whistle blown on TVIX, the ProShares fund has seen trading volume
leap to 2.3 million shares Wednesday and nearly 3.4 million as of midsession
Thursday, according to FactSet. Thursday’s volume appears to be the all-
time record for UVXY.
We’ve put in a query to ProShares on whether a similarly massive rise in
trading volume could produce the same “no more shares” announcement in
UVXY. We will update here with any response. | T*********s
发帖数: 17839 | 2 simply you can put UVXY and TVIX in one chart
so if you want bet on VIX, you'd better to buy UVXY？
or buy UVXY and short TVIX？ | p**********e
发帖数: 177 | 3 Good article ,Tardi
TVIX dropped less than VIX today, so where it's that 2X factor.
does look like overpriced.
UVXY look attractive.
Does it have levered factor, 2X, 3X?
Dose it decay? | T*********s
发帖数: 17839 | 4 same 2X ETN
【在 p**********e 的大作中提到】
: Good article ,Tardi
: TVIX dropped less than VIX today, so where it's that 2X factor.
: does look like overpriced.
: UVXY look attractive.
: Does it have levered factor, 2X, 3X?
: Dose it decay?
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