I opened a S122/S123 spread today with SPY calls this morning for a net credit of 0.44. Right now I think there is more downside risk than up, and if I’m wrong and the market rallies my long XIV position will more than make up for my 0.56 worst case loss. Initially I put in my order as AON (all or none) at …
The termination of IVO left a hole in Barclays’ inverse volatility ETN lineup. It still has XXV, but its leverage is only around 0.25 right now, so they needed a higher leverage solution that can compete with the likes of UBS’ AAVX, or VelocityShares‘ XIV—which always give 1X daily leverage. IVOP had an inception date of September 16th, 2011 with an initial value of …
I opened a 179/180 spread in GLD for a net credit of 0.20 for calls expiring this week. I’m betting there is enough downward pressure on gold to keep GLD below 179 for the week. . . .. . . . . Chart from Schwab StreetSmart Edge
IVO, one of Barlays’ inverse volatility ETNs terminated today when it briefly dipped below its $10 termination value. The automatic redemption value will be $11.8024 next Monday, the 19th. IVO was designed to behave as a true short of the short term volatility index SPXVSP ( fundamentally the same index that VXX tracks). This approach avoids the potential path dependency / compounding errors of percentage …
Redirected to volatility tickers Update: UBS terminated all of these ETNs on September 12, 2012. They never gathered enough assets to be viable. UBS has single-handedly increased the number of volatility focused ETNs/ETFs from 16 to 28. My initial analysis is that there is nothing revolutionary with these new products. Four of the twelve are effectively clones of Barclays‘ VXX and VXZ products, and VelocityShares‘ …
