Presenting The VXV Widowmaker... On Roids

Tyler Durden's picture

When we first presented the TVIX, or the double levered short-term VIX ETF, as well a few more insane ETFs just created by Standard & Poor's Financial Services LLC (yes, S&P) less than two shorts months ago, we summarized this development as follows: "Ever feel like this market just does not provide enough unique and
suicidal ways for you to lose your hard stolen money within nanoseconds
of trade execution? Never fear - here comes the TVIX, a levered third derivative bet on volatility: simply said, the TVIX will be the world's first double leveraged VIX ETF... Why not just call these what they are: a novel way (brought to you via
the synthetic CDO legacy product known as ETFs) to lose money with a
99.999% guarantee. As always, we wonder why anyone would trade this
product, when, with much better odds, one would at least get comped in
Vegas..." Well, we were right. The chart below shows what happens when one believes there is any vol, let alone double leveraged volatility left in a centrally planned, perpetually melting up stock market. The TVIX has plunged from $110 to just over $42... in a little over a month.

To those who actually did buy this TVIX, instead of taking our advice and going long Vegas, and blowing money in a far more wholesome and satisfactory way, our condolences.