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BETAPRO SP500 VIX ST FTRS 2X DLY BULL T.HVU



TSX:HVU - Post by User

Post by RichyRich$on Jan 19, 2014 8:11pm
189 Views
Post# 22109607

One More Batch of Erosion ...

One More Batch of Erosion ...We might be in for one more batch of erosion becaus right at close 4:00pm on Friday the VIX jumped from 13.20 to 14.20 instantly.  I checked UVXY (the American version of HVU) which keeps trading a few hours in after hours, and it didn't go much higher.  The last time I saw this happen in the end of November, the VIX up a dollar Monday morning but HVU the same price and then VIX started lower back to 13.0 dragging HVU lower.  If this is the case and S&P 500 makes one final push to $1,875 then HVU could hit $6.00.  Sutluck... I agree about not accumulating with this kind of ETF.  That strategy usually doesn't work for an ETF that goes down forever! Lol.  Accumulating could work for oversold companies or non leveraged sector ETF's.  I like to strike when the iron is hot, go all in, and make sure you're correct.  There will be a point where holding HVU for 8 weeks would work, because there's always a period every year where HVU doubles in 4 to 8 weeks.  Now is a pretty damn good time to go in and hold HVU for 2 months.  Even if the S&P 500 peaks at $1,875 then HVU $6.00.  Little downside and potential for 100% upside.  I took a gamble and sold HVU to buy Best Buy at $24.50.  It dropped a whopping 36% in 2 days!!!  Hoping for a quick rebound sell on Tuesday morning and buy back HVU.  Could luck out if HVU ends up lower and this weird erosion with VIX a dollar higher but HVU the same price.  I think it could be to do with the options contract expiry date.  That's when majority of the erosion happens.
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