Massive declines in these as the "sure" SHORT VOLATILITY trade blew up.
"What appears to be contributing to the dramatic losses in inverse volatility ETFs SVXY and XIV are concerns about possible termination events associated with an outsized move in the VIX futures.
- XIV appears to have a termination event clause in its prospectus related to a move of more than 80% in a single day. So far, I have not come across anything indicating a similar trigger in SVXY.
- Also, not sure if the trigger includes after hours movement. Still digging into it.
- SVXY trading at $16.20 and XIV trading at $16.00 in after hours."
- The XIV — an obscure exchange-traded note that bets against market volatility — tanked more than 80 percent in after-hours trading.
- "It is blowing up as we speak," Jim Cramer says.
- "It should put downward pressure on the stock market at the opening, should spike the VIX to 50 and then cause the market to go down," he says.
ASIA down big, wild moves in the stock index futures