shillllihs
6,044 posts
msg #141915
- Ignore shillllihs |
2/5/2018 10:25:09 PM
Talk on another Forum of xiv value being $4 and it folds tomorrow. And it will take years to cash out.
Incredible, maybe I buy $5k at a buck. The end of vol. instruments.
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pthomas215
1,251 posts
msg #141920
- Ignore pthomas215 |
2/5/2018 11:31:53 PM
In addition to being the creator of the now infamous XIV ETN - which was reportedly the most popular way of shorting volatility for retail investors, all of whom now face almost certainly total losses - Credit Suisse also happened to be its biggest holder.
now that the ETN appears fated for termination, is suddenly a very big problem for Credit Suisse since according to the latest public filings, the Swiss bank owned 4.79 million units, or over $550 million, worth of XIV at yesterday's close of $115.55, and roughly $480 million less at today's after hours closing tick of $15.43.
Of course, if the ETN is redeemed - and with its NAV at $4.22 according to the VelocityShare website - the loss could be total.And while the question remains who exactly is eating the losses at Credit Suisse - the bank or its clients - the market is not taking chances, and Credit Suisse ADRs have tumbled in Asian trading... because if Credit Suisse is on the hook, it would mean two quarters of profits have just been wiped out: recall that CS reported roughly $250MM and $300 million in profits in the last two quarters, which would mean that the XIV loss was roughly equivalent to half a year's worth or profits, an outcome which the regulators will be very interested in, not to mention shareholders, clients, and their lawyers.
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johnpaulca
12,036 posts
msg #141923
- Ignore johnpaulca |
2/6/2018 12:06:19 AM
Cheese
179 posts
msg #141899
- Ignore Cheese
modified 2/5/2018 6:34:01 PM
This will be my last post. Good bye and thank you, everyone.
***********************************************************************
sorry to see you leave, best of luck!!
PS...can you take Shills and his mutt with you.
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davesaint86
725 posts
msg #141928
- Ignore davesaint86 |
2/6/2018 6:48:28 AM
The conspiracy theorist in me think George Soros or some other criminal element may had something to do with this. Sit back and really analyze what happen and ask yourself does it make sense.
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karennma
8,057 posts
msg #141931
- Ignore karennma
modified |
2/6/2018 8:26:42 AM
johnpaulca
11,526 posts
msg #141923
- Ignore johnpaulca 2/6/2018 12:06:19 AM
Cheese
179 posts
msg #141899
- Ignore Cheese
modified 2/5/2018 6:34:01 PM
This will be my last post. Good bye and thank you, everyone.
***********************************************************************
sorry to see you leave, best of luck!!
PS...can you take Shills and his mutt with you.
======================================
Cheese and Tennisplayer2 had been here a long time and I'm sorry to see them go.
We are all trying to help eachother the best we can.
However, I have a message for NEWBIES.
I just looked at the XIV.
Don't come in here thinking you can play these ETFs and make fast money.
You will get f*d .. e-v-e-n-t-u-a-l-l-y. And you'll have no one to blame but yourself.
You can learn a lot here, but you must be your own "guru".
Study the indicators and stocks. If you can't trade 'em, then hold 'em.
You are not playing poker. You're competing with algos .. high frequency trading robots and you never know when they're gonna turn against you.
You are not as fast as the algos.
Same thing applies to options. You must study instrinsic and extrinsic value. If you don't understand how TIME value works in options trading, then you will get f'd eventually.
Please look in the upper left corner of this website. WHAT DOES IT SAY?
"Stock Screening and Analysis"
This is not a gambling website.
Please be careful.
EDIT:
Oh! And BTW, ... If U don't believe me about the ETFs ....
Look in the archives. I've warned people about these POS.
Ever heard of FXP?
These POS can go from $2,000 to $5, then REVERSE split.
Go on Yahoo Finance and see how many times these POS REVERSE split.
You can never recover your losses. Never!
Edit: Sorry about the typo. I meant XIV not VIX.
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miketranz
961 posts
msg #141934
- Ignore miketranz |
2/6/2018 8:44:18 AM
Two ETN's halted:https://www.zerohedge.com/news/2018-02-06/xiv-svxy-halted-news-pending
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davesaint86
725 posts
msg #141935
- Ignore davesaint86 |
2/6/2018 8:48:45 AM
Geez - If they are delisted class actions will be filed. Holders will receive pennies on the dollar if that.
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karennma
8,057 posts
msg #141937
- Ignore karennma |
2/6/2018 8:55:00 AM
davesaint86
384 posts
msg #141935
- Ignore davesaint86 2/6/2018 8:48:45 AM
Geez - If they are delisted class actions will be filed. Holders will receive pennies on the dollar if that.
=================
Been there, done that.
"Investors" won't get sh*+...
It's like going to the blackjack table, and then suing the casino because you lost your money.
ETFs are not an "investment".
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four
5,087 posts
msg #141941
- Ignore four |
2/6/2018 9:03:26 AM
Credit Suisse has the right, according to the prospectus, to liquidate the ETN (VIX) in the event of an 80 percent move in the ETN, which after hours seems to be the case.
http://howardlindzon.com/struck-black-swan-course-markets-turmoil/
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four
5,087 posts
msg #141942
- Ignore four |
2/6/2018 9:05:18 AM
Karen,
Please provide a summary/primer on your statement:
You must study instrinsic and extrinsic value. If you don't understand how TIME value works in options trading, then you will get f'd eventually.
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