Friday, 28 August 2015

TVIX, UVXY - a truly wild week

With the VIX screaming into the 50s at the Monday open, the 2x lev' bullish instruments of TVIX and UVXY soared. Despite the VIX being cut in half by the weekly close, TVIX and UVXY still saw powerful net weekly gains of 46.3% and 45.9% respectively.

TVIX, daily

UVXY, daily


*first, an update on the VIX, which saw a net weekly decline of -7.1%

As for TVIX and UVXY, it was an incredibly dynamic week, with the second consecutive net weekly gain.

It is notable that TVIX had risen from an Aug 10'th low of $5.31 to a Monday morning high of $15.99.

With volatility still relatively high in the mid 20s, the statistical decay problem is even more pronounced. Such instruments are almost always for short term holds only.