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VIX ETF'S

Posted on 6/6/13 at 1:31 pm
Posted by reb13
Member since May 2010
10905 posts
Posted on 6/6/13 at 1:31 pm
Has anyone traded one? There is a 2x leveraged one that I have looked at but they all just seem to be losing battles.
This post was edited on 6/6/13 at 1:43 pm
Posted by southernelite
Dallas
Member since Sep 2009
53151 posts
Posted on 6/6/13 at 2:31 pm to


Doesn't seem to be any long term gains trading on volatility.
Posted by reb13
Member since May 2010
10905 posts
Posted on 6/6/13 at 2:33 pm to
That is what I was thinking, but I was thinking a short term play would be good because there seems to be a little more volatility these couple of days.
Posted by Mootsman
Charlotte, NC
Member since Oct 2012
6024 posts
Posted on 6/6/13 at 2:33 pm to
I wouldn't get involved in that shite. My old roommate traded leveraged VIX etfs and got smoked. There's never any telling what they're going to do.
Posted by slackster
Houston
Member since Mar 2009
84610 posts
Posted on 6/6/13 at 2:37 pm to
quote:

That is what I was thinking, but I was thinking a short term play would be good because there seems to be a little more volatility these couple of days.


Leveraged ETFs are ONLY short term plays. Never buy and hold. Ever.

Good luck.
Posted by reb13
Member since May 2010
10905 posts
Posted on 6/6/13 at 2:44 pm to
I am just going to watch it for a little while. This would just be a straight gamble.
Posted by BennyAndTheInkJets
Middle of a layover
Member since Nov 2010
5593 posts
Posted on 6/6/13 at 3:54 pm to
quote:

Leveraged ETFs are ONLY short term plays. Never buy and hold. Ever.

This. Especially ones that are supposed to track volatility.

The VIX is a model index that doesn't actually have to roll options in the market so transaction costs aren't included. So not only do you get tracking error and decay from colleteral posting on the leverage side but you also pick up a shite ton of decay from costs to roll options. I honestly would never advise using leveraged volatility ETFs, period.
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