Quote:
Originally Posted by Hisam135i
Anyone have any ideas about the Tvix collapse today
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Ever since share creation halted the product has been trading at a premium. No supply, but demand exists. Hence, a premium. This is why on days when UVXY dropped 15%, TVIX either dropped a little bit (3%), or actually went up. The share have been halted since mid February. The underlying NAV (net asset value) of the instrument was actually trading at $8, and the underlying instrument for TVIX had been tracking VIX futures flawlessly. It was the premium that was distorting the surface. I suspect the correction today by Credit Suisse is so they can initiate shares creation again. Meaning, TVIX should be back to working 100% soon.