Back in the old days, the easiest way to make money in the stock market was to bet against volatility. You remember the old days, right? The halcyon days of 2017, roughly five weeks ago? Back then, two exchange-traded products betting …
Gains in the fund—its ticker is SVXY—compare with a 12% gain in the S&P 500 and around 50% for Apple stock over the same time. Betting on volatility has become increasingly popular, which is why market professionals are worried the …
Quartz8mon
But here is where we find the SVXY hidden gem: the stock goes up when the market volatility (VIX) keeps low, a kind of reverse mechanism that is, on the contrary, harmful for VXX. A VIX forward curve in contango is music to the SVXY ears …
This is a positive for funds like XIV and SVXY, and this type of price action has been a big contributor to the strong performance of both funds in 2017. However, there is another side to this story, which occurs when the stock market …
That sharp upward move in the VIX was ultimately the undoing for the VelocityShares Daily Inverse VIX Short-Term ETN (XIV) and the ProShares Short VIX Short-Term Futures ETF (SVXY), each of which ... leading up to the 1987 stock …