pthomas215
1,251 posts
msg #142468
- Ignore pthomas215 |
2/26/2018 3:22:17 PM
Pair of Volatility Funds to Be Re-Launched March 8th
Posted: 26 Feb 2018 07:58 AM PST
We received huge news from REX Shares this morning, announcing that they are updating the objective of their VMIN & VMAX volatility pair. This looks like a really interesting, and much more sensible, play on volatility.
They are moving away from high-beta volatility ETFs (which are a high risk for termination when volatility spikes too much) to a product that trades on a daily basis somewhere between XIV and ZIV. The result should be a new VMIN fund that is less "boring" in movement as ZIV but also carry a fraction of the risk of a fund blow up and large drawdowns that were seen with XIV.
The REX VolMAXX Long VIX Weekly Futures Strategy ETF (VMAX) and the REX VolMAXX Short VIX Weekly Futures Strategy ETF (VMIN) have filed supplemental registration statements that revise their stated Principal Investment Strategies. The Funds expect to invest primarily in VIX Futures Contracts with two to six months to expiration, rather than VIX Futures Contracts with less than one month to expiration as was previously the case. Beginning on March 7, 2018, the Funds anticipate that they may begin investing in VIX Futures Contracts with greater than one month to expiration, and the Funds may therefore have exposure to VIX Futures Contracts with a weighted average time that is greater than, and which could be substantially greater than, one month. Additionally, effective on or about April 25, 2018, the name of VMAX will change to “REX VolMAXXTM Long VIX Futures Strategy ETF”, and the name of VMIN will change to “REX VolMAXXTM Short VIX Futures Strategy ETF.”
|
shillllihs
6,045 posts
msg #142469
- Ignore shillllihs |
2/26/2018 4:06:31 PM
I think Vmin will be a great buy n hold. Maybe a 10 bagger.
|
pthomas215
1,251 posts
msg #142471
- Ignore pthomas215 |
2/26/2018 5:07:05 PM
i think so too. do you know the movement differences between VMIN, ZIV and SSO ? i havent really studied the leveraged nature of each.
|
shillllihs
6,045 posts
msg #142472
- Ignore shillllihs
modified |
2/26/2018 5:54:53 PM
Well Svxy should be the fastest if it lasts, followed by Vmin then Ziv or Sso.
I might throw several thousand at either Svxy or Vmin and somehow try not to touch it for 2 years.
Could see 50-100.
Vmin pays a div.
|
pthomas215
1,251 posts
msg #142474
- Ignore pthomas215 |
2/26/2018 6:44:06 PM
""try to not touch it for 2 years"...isnt that the truth..man, i cannot get out of the over trading habit.
In theory i liked kevin's system, but in pracitce it was extremely risky. if you talk to anyone at the major trading houses, they were not allowed to put clients in XIV. it was deemed too risky. for retail traders, it is not a big deal. but it was a risky asset class to play in.
|
jmnn
16 posts
msg #142481
- Ignore jmnn |
2/27/2018 9:54:22 AM
Kevin never really looked into the economics of trading. Or the mechanics of the instruments he was trading in at a deep level. It was all just algorithms without human input. Which works... until it doesn't because of a termination event that I doubt Kevin even knew about.
|
pthomas215
1,251 posts
msg #142485
- Ignore pthomas215 |
2/27/2018 11:30:25 AM
yes indeed. and i understand what you are saying. Kevin provided a very interesting methodology to trade....intelligent guy...just the instrument used was a bit risky. if he had the same system on SSO, rock n roll.
|
shillllihs
6,045 posts
msg #142486
- Ignore shillllihs |
2/27/2018 12:51:29 PM
Bought a tiny bit Vmin at 2.96
This could be 15 by next year.
Svxy now adjusted to move at 50% speed, so both about the same, maybe Vmin quicker.
|
jmnn
16 posts
msg #142488
- Ignore jmnn |
2/27/2018 1:09:37 PM
What's the story with VMIN's dividends? The only vol ETPs I was privy to were XIV and TVIX.
A $10 dividend on a $45 stock (at the time)? A special dividend in April? I just printed off the prospectus I'm going to read it after work, but cliff notes would be nice too. Thanks.
|
shillllihs
6,045 posts
msg #142489
- Ignore shillllihs |
2/27/2018 1:25:54 PM
I haven’t researched it much but it drops big after divy.
Best time to buy is after a divy with a big drop and sell before next one.
|