The collapse of UVXY/TVIX

What do we have to do to post charts if we are not members? I remember someone saying something about using dropbox, but wasn't sure and would be interested in posting charts from time to time. Speaking of charts. If you haven't already, you should take a look at the chart of UVXY/TVIX compared with the VIX and and an index (I used SPY). I think this is a great case study of how these things are really can bite you in just 2 days by deterioration. I bought yesterday in the 12.28 area and sold after hours at about 13.13. Sold short this morning in the 12.30 range and as IYB says, just sit tight! I was able to capitalize, but a 250 point move down in the Dow and then currently a move up of about 85 has caused these instruments to be lower than they were yesterday (even though the VIX is higher than yesterday) I wish I could remember, but about 3 months ago, I remember reading an article where the individual names these something towards the effect of "leveraged ETF's of doom".

It's called contango, plus NAV tracking issues on top of that. if you don't know what that is....well, at least you have sense enough not to hold them overnight! You can just go hit VIX options...I think these things may disappear after enough people get burned on them. But they are good fun for options plays.

It's called contango, plus NAV tracking issues on top of that. if you don't know what that is....well, at least you have sense enough not to hold them overnight!

You can just go hit VIX options...I think these things may disappear after enough people get burned on them. But they are good fun for options plays.

Trust me, I know all about nav tracking I saw a lot of people get burned on TVIX when it went crazy a few months ago! It looks like there is a small migration from TVIX to UVXY.