VIX

Sold 15 Feb $30 VIX calls for $.40 this morning on the pullback.  I did place a stop loss on this trade just in case volatility wants to shoot up.
 
Kinda funny, there's a VIX inverse security which is XIV (inverse of VIX ticker, makes sense):
https://finance.google.com/finance?q=xiv&ei

So when the VIX goes up 115% in a day, this thing should track the inverse right?  But how can an equity go down over 100% in a trading session.  I guess electronically things got out of wack and it sunk only 14% during trading today, but is now down 88% in after hours trading. 

Tomorrow should be interesting, I have a feeling we'll be off 1000 at opening bell and circuit breakers will kick in before lunch.  Cheers.
 
aquabliss said:
Kinda funny, there's a VIX inverse security which is XIV (inverse of VIX ticker, makes sense):
https://finance.google.com/finance?q=xiv&ei

So when the VIX goes up 115% in a day, this thing should track the inverse right?  But how can an equity go down over 100% in a trading session.  I guess electronically things got out of wack and it sunk only 14% during trading today, but is now down 88% in after hours trading. 

Tomorrow should be interesting, I have a feeling we'll be off 1000 at opening bell and circuit breakers will kick in before lunch.  Cheers.
Click to expand...

You never know
 
I'm a contrarian on this. My spidey senses say it will be a 600 point dead cat bounce to the positive by 2:00 PST tomorrow. We'll see as we're not even at the 10% correction level yet. Plenty of additional blood to spill before this reversal runs out of steam.

My .02c

SGIP
 
aquabliss said:
Kinda funny, there's a VIX inverse security which is XIV (inverse of VIX ticker, makes sense):
https://finance.google.com/finance?q=xiv&ei

So when the VIX goes up 115% in a day, this thing should track the inverse right?  But how can an equity go down over 100% in a trading session.  I guess electronically things got out of wack and it sunk only 14% during trading today, but is now down 88% in after hours trading. 
Click to expand...

Credit Suisse says it will end trading in the volatility security that's become the focus of this sell-off

Credit Suisse said it will end trading in a security that some investors believed was exaggerating movements in volatility futures markets and even the overall stock market.

The last day of trading for VelocityShares Daily Inverse VIX Short-Term exchange-traded note (XIV) will be Feb. 20, according to an announcement from Credit Suisse. The bank is triggering this liquidation because the product during these last three volatile days could not keep up with the scenario it was supposed to track: a calm market.

The XIV security, which had fallen roughly 85 percent in after-hours trade, resumed trading Tuesday afternoon after being halted throughout the morning. It was down 94 percent before a series of trading halts.

The security is supposed to give the opposite return of the Cboe Volatility index (VIX), the market's widely followed turbulence gauge. The VIX's value has exploded higher, topping 50 on Tuesday. That theoretically should have wiped out most of the value of the VelocityShares ETN.

Multiple exchange-traded securities that are also supposed to be bets on calm markets were halted Tuesday after losing the majority of their value overnight.
https://www.cnbc.com/2018/02/06/the...off-is-halted-after-an-80-percent-plunge.html
 
Daaannng... only 33 points off of my Dow +600 Tuesday move guess prediction.

Don't ask me about tomorrow because I have no idea.

My .02c

SGIP
 
aquabliss said:
But how can an equity go down over 100% in a trading session.
Click to expand...
100% up inverse is 50% down
50 to 100 = 100% gain
100 to 50 = 50%  loss

50% up inverse is 33% down
100 to 150 = 50% gain
150 to 100 = 33% loss
 
Cramer blames this week's crazy market on a 'group of complete morons' out speculating
This week's crazy market swings are largely due to a band of uninformed investors who got caught speculating, CNBC's Jim Cramer said Thursday.

"A group of complete morons" who traded little-known, leveraged products that bet on volatility is "blowing up" everything, Cramer said on "Squawk on the Street."

Cramer has been particularly critical of the VelocityShares Daily Inverse VIX Short-Term exchange-traded note, which is traded under the symbol XIV, and those who put money into it.

"What bothers me is the people who have never looked at a stock and don't know how to analyze it [are] out in full force today," said Cramer, host of "Mad Money."

"They've never been better about not knowing anything about the stocks," he said. "They got it all figured out," he added, sarcastically.
Click to expand...
https://www.cnbc.com/2018/02/08/cramer-blames-this-weeks-crazy-market-on-a-group-of-morons.html
 
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