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



TSX:HVU - Post by User

Comment by MayorRobFordon Jul 11, 2015 10:00am
42 Views
Post# 23914166

RE:RE:RE:RE:RE:RE:RE:RE:RE:ANYONE HOLDING OVER LONG LONG WEEK-END

RE:RE:RE:RE:RE:RE:RE:RE:RE:ANYONE HOLDING OVER LONG LONG WEEK-ENDHVU is not a stock, but an ETF. commodity ETF's have a disadvantage of having contango, and this one's higher than every other I've seen. Which is one reason why it decays the way it does. Another is it follows VIX futures, and not spot VIX itself. VIX futures almost always lag VIX. Sometimes they hardly budge because the market sees the volatility as being limited to the immediate term. Third reason why this p.o.s always drops long term are futures are always priced higher at the beginning and drop over time without the S&P moving at all. It is always an uphill battle trading HVU. I doubt the above are clearly understood by HVU traders that trade this crud. I recommend you look at CHAU/CHAD or YINN/YANG (Chinese market) if you love the moves of HVU. There is erosion from management fees, but no contango as it follows an index.
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