El interés en corto de ProShares Short VIX Short Term Futures ETF da a los inversores una idea del grado en que los inversores apuestan por la caída de las acciones de ProShares Short VIX Short Term Futures ETF. Los datos de interés en corto se actualizan cada dos semanas.

ProShares Short VIX Short Term Futures ETF (BATS:SVXY), Informe de interés en corto

ProShares Short VIX Short Term Futures ETF

The index seeks to offer exposure to market volatility through publicly traded futures markets and is designed to measure the implied volatility of the S&P 500 over 30 days in the future.

The growing Middle Eastern conflict is causing tremors in worldwide markets, leading investors to recalculate their exposure to geopolitical risk. With <a href="https://www.benzinga.com/markets/commodities/25/06/45897276/oil-etfs-surge-over-6-as-trump-orders-middle-east-evacuation-amid-iran-tensions-warns-region-could-be-dangerous">oil surging</a>, gold picking up speed, and defense assets gathering strength, some ETFs have gained sharp focus. Yet, beyond the familiar suspects in defense and energy, a more pervasive thematic rotation seems to be coming into focus, spotlighting those <a href="https://www.benzinga.com/etfs">ETFs providing indirect exposure to increased volatility</a>, inflation fears, and international trade disruptions. These are the &#8216;crisis alpha&#8217; plays — investment strategies that bet on the market trends that occur as a result of a crisis.
on June 11, 2025, U.S. crude futures jumped more than 4% to $68 a barrel, its biggest one-day rise since October on rising disagreements between the U.S. and Iran. Brent Crude prices surged as much as 7% on Friday. Fears in the market were fueled further after Israel launched a surprise attack against Iranian targets on June 12, heightening geopolitical risk in the already volatile region. In turn, <a href="https://www.benzinga.com/markets/market-summary/25/06/45918802/middle-east-tensions-rattle-markets-us-stock-futures-slide-oil-jumps-8-gold-surges-above-3400-after-israel-strikes-iran">industry-specific ETFs</a> like United States Oil Fund LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>), United States Brent Oil Fund LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BNO#NYSE">BNO</a>), and Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) saw significant gains.
As energy, gold, and defense ETFs retain safe-haven flows, other thematic funds that will benefit from the broader ramifications of conflict-driven market dislocations are also gaining focus.
<h2 class="wp-block-heading">ETFs To Monitor With Rising Middle East Tensions</h2>
<h3 class="wp-block-heading">Inflation-Protection Tactics</h3>
The price rebound in oil and increasing geopolitical uncertainty have reignited inflation concerns, which have fueled interest in ETFs dedicated to real assets and inflation beneficiaries. The Horizon Kinetics Inflation Beneficiaries ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/INFL#NYSE">INFL</a>) and the ProShares Inflation Expectations ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RINF#NYSE">RINF</a>) give investors access to companies and assets likely to fare well in an inflationary environment. If crude oil continues higher, inflation-sensitive groups could see increased interest in the days to come. INFL has gained around 1% after Israel attacked Iran and is up 0.35% as of 10.23 a.m. ET, Friday.
<h3 class="wp-block-heading">Supply Chain And Shipping Risks</h3>
With the United Kingdom issuing its own maritime warning about possible disruptions at the Strait of Hormuz, a vital chokepoint for global oil shipments, shipping and global logistics-based ETFs might see increased attention. The Breakwave Dry Bulk Shipping ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BDRY#NYSE">BDRY</a>), which is up 6.7% this week so far, offers focused exposure to firms engaged in international shipping and logistics, groups of companies frequently touched by geopolitical tensions.
<h3 class="wp-block-heading">Cybersecurity And New Defense</h3>
As the nature of new warfare spreads beyond territorial limits to the cyberspace arena, ETFs dedicated to surveillance and cybersecurity are becoming more pertinent. The ETFMG Prime Cyber Security ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HACK#NYSE">HACK</a>), with a portfolio of firms engaged in safeguarding digital infrastructure, would profit from the growing demand for cyber defense against the threat of retaliatory strikes on essential systems.
<h3 class="wp-block-heading">Volatility Trading Products</h3>
For traders and tactical investors, the growing uncertainty has renewed interest in volatility-linked ETFs. Vehicles like the ProShares VIX Mid-Term Futures ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/VIXM#BATS">VIXM</a>) and the Barclays iPath Series B S&amp;P 500 VIX Short-Term Futures ETN (BATS:<a class="ticker" href="https://www.benzinga.com/stock/VXX#BATS">VXX</a>) are used to hedge against market fluctuation. VIXM is up 2%, and VXX has gained 5% as of 10.23 a.m. ET, Friday. The ProShares Short VIX Short-Term Futures ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/SVXY#BATS">SVXY</a>) provides traders with an opportunity to bet on a possible cooling-off in volatility after high-stakes negotiation. Right now though, the ETF is down nearly 3% on Friday morning.
<h2 class="wp-block-heading">A Broader Rotation Into "Crisis Alpha" Plays</h2>
The market reaction is no longer just about oil. Investor interest is broadening into ETFs that provide thematic exposure to sectors positioned to weather systemic shocks—whether that's through inflation protection, supply chain resilience, or cybersecurity.
While diplomatic channels continue to be uncertain and tensions exhibit no near-term tendency to de-escalate, investors might continue to find shelter in ETFs, which provide both defensive positioning and opportunistic upside. With top-level meetings between the U.S. and Iran set for this Sunday in Oman, the result may turn out to be crucial not just for diplomatic stability but also for ETF market dynamics in the near term.
Read Next: 
<a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/25/06/45891942/palantirs-ai-etfs">Palantir Powers Up: AI ETFs Ride The Rally, But At What Cost?</a>
Photo: Shutterstock

Sector ETFs

ETFs

BDRY

HACK

INFL

PINK

RINF

SVXY

VIXM

Barclays Bank iPath S&P 500 VIX Short-Term Futures ETN

Beyond Oil And Gold: Can We Expect A Surge In 'Crisis Alpha' ETFs Amid Israel-Iran Tensions?

After a shaky 2022 that saw the S&amp;P 500 (INDEX: .INX) lose almost 20%, the first half of 2023 has seen a strong reversal with a more than 16% gain.&nbsp;
Accompanying this rise has been the steady decline of market volatility. Volatility, often measured by the CBOE Volatility Index (INDEXCBOE: VIX), is typically inversely related to the general direction of the stock market and is down 29.91% YTD.
VIX, in essence, measures the sentiment of investors and is often called the &ldquo;fear index&rdquo;. As stocks rise, investors are more confident, as prices fall investors are more fearful.
The largest spikes in VIX, by a mile, came at the height of the 2008 financial crisis and again during the spring of 2020 as the world shut down in response to the Covid-19 Pandemic.&nbsp;
Although VIX is widely used, some fundamental flaws in its calculation have led to the creation of an alternative volatility index that is gaining in popularity. The MIAX SPIKES Volatility Index (INDEX: SPIKE) offers several advantages, including using live pricing data (vs an average calculation) and updating every 100 milliseconds (vs every 15 seconds).
These indexes cannot be traded directly, a number of products such as Exchange Traded Funds (ETFs) offer investors exposure. This allows investors to express a view of the general sentiment of the market.
The following are the best performing Volatility ETFs since January 1st of this year. Given the steady decline in volatility, all 3 are inverse ETFs, that is, ETFs whose performance is inversely related to that of the underlying asset. Only ETFs with Assets Under Management (AUM) of greater than $50 million were considered.
-1x Short VIX Futures ETF (BATS: <a class="ticker" href="https://www.benzinga.com/stock/svix#BATS">SVIX</a>)
<ul>
<li>Up 84.69% YTD</li>
<li>Tied to the Short VIX Futures Index</li>
<li>$80.7 million in AUM</li>
<li>Expense ratio of 1.47%</li>
<li>3 month average daily trading volume of 1,814,276</li>
</ul>
ProShares Short VIX Short-Term Futures ETF (BATS: <a class="ticker" href="https://www.benzinga.com/stock/svxy#BATS">SVXY</a>)
<ul>
<li>Up 42.93%</li>
<li>Seeks to return &frac12; of the inverse of the VIX Short-Term Futures Index</li>
<li>$259.7 million in AUM</li>
<li>Expense ratio of .95%</li>
<li>3 month average daily trading volume of 1,922,784</li>
</ul>
Simplify Volatility Premium ETF (NYSEARCA: SVOL)
<ul>
<li>Up 4.11%</li>
<li>Seeks to return 0.2x to 0.3x of the inverse of the VIX Short-Term Futures Index</li>
<li>$358.4 million in AUM</li>
<li>Expense ratio of .5%</li>
<li>3 month average daily trading volume of 275,539</li>
</ul>
Featured photo by<a href="https://unsplash.com/@sigmund?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText"> Sigmund</a> on<a href="https://unsplash.com/images/stock?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText"> Unsplash</a>

SVIX

SVOL

This Fund Gained Almost 85% So Far This Year - The Best Volatility ETFs Of 2023

Market attention is turning to the upcoming release of the Federal Reserve minutes from the June 14 meeting, scheduled for release at 2 p.m. EDT Wednesday. This highly anticipated event is expected to spark reactions across markets as investors seek further clarity on the <a href="https://www.benzinga.com/economics/macro-economic-events/23/07/33099550/attention-shifts-to-fed-minutes-volatility-may-resume-this-week-as-markets-do-not" target="_blank" rel="noreferrer noopener">Federal Reserve&#8217;s interest rate trajectory. </a>
Let&#8217;s explore what the minutes might reveal and how they could shape market expectations.
<h2 class="wp-block-heading">Fed Pauses In June, But Hints At 2 More Hikes</h2>
During the June meeting, the Fed decided to maintain the funds rate target at 5%-5.25%, pausing a series of uninterrupted rate hikes that started in March 2022. Yet the updated economic projections in June suggest that fed funds may reach 5.6% by the end of the year, indicating the possibility of two more rate hikes.
Fed Chair Jerome Powell&#8216;s recent comments suggest that two further rate hikes are a &#8220;pretty good guess&#8221; following the June pause, with the possibility of consecutive hikes still on the table.
It&#8217;s highly likely the minutes of the June meeting will confirm the board&#8217;s strong majority for two additional rate hikes in 2023 and the intention to maintain higher interest rates for an extended period.
Read also: <a href="https://www.benzinga.com/news/23/07/33110810/after-powells-muddled-message-economist-thinks-fed-minutes-may-clarify-awkward-june-meet-outcome" target="_blank" rel="noreferrer noopener">After Powell&#8217;s &#8216;Muddled&#8217; Message, Economist Thinks Fed Minutes May Clarify &#8216;Awkward&#8217; June Meet Outcome</a>
<h2 class="wp-block-heading">Market Expectations Are Dovish: Only 1 Rate Hike Has Been Priced In</h2>
Skepticism remains among market participants that the Fed can enact two more rate hikes in 2023.
CME Group&#8217;s Fedwatch tool predicts a nearly 90% chance of a rate hike in July, but only a 17% or 30% chance of another hike in either September or November.
The market has already priced in a rate cut in the first quarter of 2024, but the Fed minutes could push this optimistic expectation forward to the second quarter of next year. The Fed&#8217;s latest economic projections suggest a gradual decline in the fed funds rate to 4.6% in 2024. 
<h2 class="wp-block-heading">CME Group Fedwatch: Target Rate Probabilities As Of July 5, 2023</h2>
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>MEETING DATE</th>
<th>400-425</th>
<th>425-450</th>
<th>450-475</th>
<th>475-500</th>
<th>500-525</th>
<th>525-550</th>
<th>550-575</th>
<th>575-600</th>
</tr>
</thead>
<tbody>
<tr>
<td>26/07/2023</td>
<td>0.0%</td>
<td>0.0%</td>
<td>0.0%</td>
<td>0.0%</td>
<td>11.3%</td>
<td>88.7%</td>
<td>0.0%</td>
<td>0.0%</td>
</tr>
<tr>
<td>20/09/2023</td>
<td>0.0%</td>
<td>0.0%</td>
<td>0.0%</td>
<td>0.0%</td>
<td>9.1%</td>
<td>73.2%</td>
<td>17.7%</td>
<td>0.0%</td>
</tr>
<tr>
<td>01/11/2023</td>
<td>0.0%</td>
<td>0.0%</td>
<td>0.0%</td>
<td>0.0%</td>
<td>6.6%</td>
<td>55.8%</td>
<td>32.8%</td>
<td>4.8%</td>
</tr>
<tr>
<td>13/12/2023</td>
<td>0.0%</td>
<td>0.0%</td>
<td>0.0%</td>
<td>1.2%</td>
<td>15.5%</td>
<td>51.7%</td>
<td>27.7%</td>
<td>3.9%</td>
</tr>
<tr>
<td>31/01/2024</td>
<td>0.0%</td>
<td>0.0%</td>
<td>0.4%</td>
<td>5.6%</td>
<td>26.7%</td>
<td>44.2%</td>
<td>20.3%</td>
<td>2.7%</td>
</tr>
<tr>
<td>20/03/2024</td>
<td>0.0%</td>
<td>0.2%</td>
<td>2.7%</td>
<td>14.9%</td>
<td>34.4%</td>
<td>33.7%</td>
<td>12.6%</td>
<td>1.5%</td>
</tr>
</tbody>
</table>
</figure>
<h2 class="wp-block-heading">Investors Brace For Return Of Volatility</h2>
There is room for surprises and thus a return of volatility if the Fed sticks to a fairly hawkish stance by leaning toward two hikes. 
Ahead of Wednesday&#8217;s release of the Federal Reserve&#8217;s minutes, the CBOE Volatility Index (VIX), or &#8216;fear index,&#8217; rose by 3%.
At the end of June 2023, the volatility gauge hit the lowest level since February 2020 after a 44% year-to-date plunge. 
The following popular ETFs that track the VIX index:
<ol>
<li>iPath Series B S&amp;P 500 VIX Short-Term Futures ETN (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VXX#NYSE">VXX</a>)</li>
<li>ProShares VIX Short-Term Futures ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIXY#NYSE">VIXY</a>)</li>
<li>VelocityShares Daily 2x VIX Short-Term ETN (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TVIX#NYSE">TVIX</a>)</li>
<li>ProShares Ultra VIX Short-Term Futures ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UVXY#NYSE">UVXY</a>)</li>
<li>iPath Series B S&amp;P 500 VIX Mid-Term Futures ETN (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VXZ#NYSE">VXZ</a>)</li>
<li>VelocityShares Daily Inverse VIX Short-Term ETN (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XIV#NYSE">XIV</a>)</li>
<li>ProShares Short VIX Short-Term Futures ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SVXY#NYSE">SVXY</a>)</li>
</ol>
Photo via Shutterstock.

Broad U.S. Equity ETFs

Specialty ETFs

Previews

Economics

Federal Reserve

Trading Ideas

TVIX

UVXY

VIXY

Barclays Bank iPath S&P 500 VIX Mid-Term Futures ETN

Fed Minutes Arrive At Critical Juncture: Will The Call For 2 Hikes Shake Markets?

News

AAPL

RDBX

TSLA

Top Wall Street Bets Mentions for Thursday June 23, 2022 After-Hours: FDX, GME, TSLA, UVXY, AMD, AMC, AAPL, RDBX, UPS, SVXY

This special presentation from Ross Cameron is from Benzinga&#39;s first-ever virtual&nbsp;<a href="https://www.benzinga.com/events/options-bootcamp/">Benzinga Options Boot Camp</a>&nbsp;on Saturday, April 18.&nbsp;Check back with Benzinga for&nbsp;more coverage of this all-day event with options trading experts who are giving traders of all experience levels real, dependable strategies for hitting the ground running or expanding an existing portfolio.&nbsp;
In late February, financial markets began a historic sell-off alongside the&nbsp;COVID-19 pandemic.&nbsp;
Ross Cameron, the founder of Warrior Trading, a trading room and education community, said he&nbsp;leveraged his years of experience to successfully trade securities such as the&nbsp;Direxion Daily S&amp;P 500 Bull 3X (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/spxl#NYSE">SPXL</a>), Direxion Daily S&amp;P 500 Bear 3X (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/spxs#NYSE">SPXS</a>), ProShares Short VIX Short Term (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/svxy#NYSE">SVXY</a>), Moderna Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mrna#NASDAQ">MRNA</a>), Blue Apron Holdings Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/aprn#NYSE">APRN</a>), Delta Air Lines Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dal#NYSE">DAL</a>) and&nbsp;Direxion Daily Junior Gold Mine (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jnug#NYSE">JNUG</a>).
During the Benzinga Options Boot Camp, Cameron broke&nbsp;down the strategies that he said&nbsp; allowed him to navigate market turmoil &mdash; and make $44,000.
&ldquo;That&rsquo;s not something you probably see every day. Results are not typical,&rdquo; Cameron said. &ldquo;I want to inspire you and challenge you to begin your own small account challenge.&rdquo;
<h3>Cameron&#39;s Baby Steps</h3>
A major step toward&nbsp;Cameron&#39;s profitability involved&nbsp;getting a feel for the market, he said.&nbsp;
&ldquo;I say all the time now to my beginner students that you have no business trading with real money until you have first proven you can be profitable in a simulator.&rdquo;
The next milestone is understanding the concept of losing less money than you make, Cameron said.&nbsp;
&ldquo;What most traders end up doing without realizing it is trading with a negative profit-loss ratio, which means their&nbsp;average losers are often two or even three times the size of their average profit. That&rsquo;s a very difficult metric to overcome and be profitable in spite of.&quot;
Cameron focuses on setting the bar low, encouraging traders to adopt a profit-loss ratio of 2-to-1&nbsp;when starting out.
&ldquo;If you had that profit-loss ratio, you only need to be right 33% of the time in order to break even.&rdquo;
<h3>Cameron On&nbsp;Executing On Opportunity</h3>
&ldquo;Rather than be a jack of all trades, you want to find one strategy that you can really master,&rdquo; the Warrior Trading founder said.&nbsp;
During the 2020 market crash, Cameron said he&#39;s focused on the S&amp;P 500 and VIX indices. While trading, Cameron&nbsp;noticed that the two major products would diverge and prove difficult to trade together. That&rsquo;s when Cameron looked to leveraged and inverse ETFs.
Additionally, Cameron said he&nbsp;looks at how options can be used to diversify trading income and reduce the volatility of portfolio returns.
&ldquo;There are a million option strategies to learn,&rdquo; Cameron said. &ldquo;I prefer selling a naked put that&rsquo;s cash covered. It&rsquo;s good for generating a bit of premium on an account where you have a retirement type focus, where you&rsquo;re genuinely okay with buying some long term positions.&rdquo;
<h3>Cameron On Maintaining Composure</h3>
Cameron&#39;s discussion ended&nbsp;with a talk about minimizing losses and focusing on the opportunity that lies ahead.
&ldquo;Sometimes I&rsquo;ll have a loss on a stock one day and then, a couple of days later, it&rsquo;s back up and I can have another opportunity to trade it,&rdquo; he said.
&ldquo;Set realistic goals and be willing to walk away, knowing that every single day, you&rsquo;re either leaving on the table or giving back profit. I prefer to give away profit.&rdquo;
Photo courtesy of Warrior Trading.

Options

Events

Markets

APRN

JNUG

MRNA

SPXL

SPXS

Ross Cameron's Strategy For Using Options To Combat Market Volatility

Traders are always on the lookout for the next short squeeze candidate. Short squeezes can send share prices skyrocketing in a matter of minutes and hours, and traders who are along for the ride can make a killing just by timing one squeeze correctly.
S3 Partners analyst Ihor Dusaniwsky released his latest list of the top short squeeze ETFs candidates based on short interest and short percent of float.
Dusaniwsky said there are currently only 11 U.S. ETFs with short interest of at least $25 million and short percent of float of at least 40%.
&ldquo;Borrow rates on these ETF shorts are generally cheaper than equities with high SI % Float due to the ability for brokers to create ETFs as trading or stock borrow demand increases, although ETNs and leveraged ETFs usually have higher stock borrow rates due to the difficulty and expense of creating new shares,&rdquo; Dusaniwsky wrote in the report.
See Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/19/09/14397551/short-squeeze-candidates-10-most-heavily-shorted-stocks">Short Squeeze Candidates: 10 Most Heavily Shorted Stocks</a>
<h3>Short Squeeze Candidates</h3>
Here are S3&rsquo;s 10 best ETF candidates for a potential short squeeze.
<ol>
<li>SPDR S&amp;P Retail (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xrt#NYSE">XRT</a>), $878.0 million short interest, 326.4% of float.</li>
<li>BARCLAYS IPTH SRS B S&amp;P SHRT TRM ETN (BATS: <a class="ticker" href="https://www.benzinga.com/stock/vxx#BATS">VXX</a>), $982.0 million short interest, 139.7% of float.</li>
<li>SPDR S&amp;P Oil &amp; Gas Explore &amp; Prod. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xop#NYSE">XOP</a>), $1.88 billion short interest, 111.7% of float.</li>
<li>VANECK VECTORS/SEMICONDUCTOR ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/smh#NYSE">SMH</a>), $1.48 billion short interest, 99.1% of float.</li>
<li>SPDR KBW Regional Banking (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kre#NYSE">KRE</a>), $1.69 billion short interest, 95.3% of float.</li>
<li>SPDR S&amp;P Biotech (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xbi#NYSE">XBI</a>), $3.29 billion short interest, 84.9% of float.</li>
<li>VANECK VECTORS/PHARMACEUTICAL ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pph#NASDAQ">PPH</a>), $95.0 million short interest, 61.9% of float.</li>
<li>PROSHARES TR II/SHORT VIX SHORT-TER (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/svxy#NYSE">SVXY</a>), $157.0 million short interest, 50.4% of float.</li>
<li>VAR RATE VELOCITY S (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dgaz#NYSE">DGAZ</a>), $88.0 million short interest, 43.4% of float.</li>
<li>SPDR S&amp;P Metals and Mining (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xme#NYSE">XME</a>), $168.9 million short interest, 42.8% of float.</li>
</ol>

Analyst Color

Long Ideas

Short Sellers

Analyst Ratings

DGAZ

Merrill Lynch Pharmaceutical HOLDRs Trust

10 ETFs That Could Be Primed For A Short Squeeze

U.S. stocks had another volatile day of trading Friday, capping off one of the wildest weeks for the market in years.
The S&amp;P 500 and the Dow made a huge comeback Friday afternoon, but the indices still experience their most volatile week since October 2008. Once the dust settled on the week, the Dow had traveled more than 20,000 points, according <a href="https://www.cnbc.com/2018/02/09/dow-travels-20000-points-in-wild-week.html?__source=twitter%7Cmain">to CNBC</a>.
The Dow closed Friday around 24,100 and the S&amp;P 500 closed around 2,619.
<h3>
	Know What You Own</h3>
The consensus opinion among market experts is that investors shouldn&rsquo;t panic after being blindsided by the sell-off.
&ldquo;The economy is doing better now than it has any time in the past decade,&rdquo; Bankrate.com Chief Financial Analyst Greg McBride <a href="https://www.benzinga.com/analyst-ratings/analyst-color/18/02/11162479/another-rough-day-for-the-markets">said Thursday</a>. &ldquo;This is just some healthy, and overdue, volatility to wring out any excess.&rdquo;
Unfortunately, Stifel chief economist Lindsey Piegza said &ldquo;stay calm&rdquo; doesn&rsquo;t provide much comfort for investors who took huge hits this week.
&ldquo;From a longer-term view, or arguably a more level-headed perspective, advisors recommend knowing what you own and the reasons behind it, period,&rdquo; Piegza said.
Related Link: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/18/02/11143545/correction-territory-putting-it-into-perspective">Correction Territory: Putting It Into Perspective</a>
<h3>
	Inverse Volatility Loop</h3>
So where were all the selling pressure and wild market swings coming from? Inverse volatility funds, including the Credit Suisse AG &ndash; VelocityShares Daily Inverse VIX Short Term ETN (NYSE: <a class="ticker" href="/stock/xiv#NYSE">XIV</a>) and the ProShares Trust II (NYSE: <a class="ticker" href="/stock/svxy#NYSE">SVXY</a>), have taken much of the blame for the historical spike in stock market volatility this week.
These inverse volatility ETNs are designed to be reverse-levered to the VIX volatility index. This leverage creates a unique situation where the assets under management of the funds decrease as the VIX rises. As the value of the VIX contracts being shorted increases, the fund also becomes &ldquo;more short&rdquo; the VIX, a phenomenon that must be offset by reducing short holdings, which once again involves buying underlying VIX futures contracts.
&ldquo;This buying pushes the volatility higher still, reducing AUM further, and making the issuer&#39;s hedging portfolio notionally more short, inducing further VIX futures buying to resize the portfolio to shrinking AUM,&rdquo; Bernstein analyst Noah Weisberger said Thursday.
In fact, things got so far out of control during Monday&#39;s after-hours trading session that the XIV dropped 80 percent from its previous day&rsquo;s close, triggering an &ldquo;acceleration event&rdquo; that prompted Credit Suisse&nbsp;to liquidate the fund.
<h3>
	Rising Bond Yields</h3>
The other major culprit this week was rising bond yields.
&quot;The bond market has definitely got the stock market&#39;s attention,&quot; <a href="http://money.cnn.com/2018/02/08/investing/dow-jones-stock-market/index.html">said Ryan Detrick</a>, senior market strategist at LPL Financial. &quot;Is the bond market telling us something we don&#39;t know? Is there more inflation down the road than we&#39;re expecting?&quot;
Gorilla Trades strategist Ken Berman said the Federal Reserve has kept interest rates so low for so long that it has created some imbalances in the market.
&ldquo;The tough part of this market decline is that it has occurred against the backdrop of a strong government jobs report on Friday, which showed 200,000 new jobs,&rdquo; Burns said Friday.
<h3>
	Silver Linings</h3>
Despite the major sell-off, there were still some silver linings for traders this week. Dennis Dick, co-host of <a href="http://premarket.benzinga.com/pre-market-show/">PreMarket Prep</a>, said traders using the right strategies made a lot of money this week. Days of extreme volatility often create short-term divergence among highly correlated stocks, Dick said.
&ldquo;These are your best days as relationship traders, because they&#39;re throwing everything everywhere,&rdquo; Dick said.
Brokers also had a great week.
&ldquo;Friday [Feb. 2] was the second busiest trading day in Fidelity&rsquo;s history, and Monday was THE busiest trading day ever,&rdquo; Robert Beauregard, director of public relations at Fidelity Investments, told Benzinga in an email.
Robinhood and TD Ameritrade Holding Corp. (NYSE: <a class="ticker" href="/stock/amtd#NYSE">AMTD</a>) also had<a href="https://www.benzinga.com/news/18/02/11143390/busiest-trading-day-ever-brokerages-retail-clients-react-to-volatility"> big weeks</a>.
Related Link: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/18/02/11158220/analyst-explains-the-inverse-volatility-fund-feedback-l">Analyst Explains The Inverse Volatility Fund Feedback Loop</a>
<h3>
	Price Action</h3>
Here&rsquo;s a rundown of how the market finished this crazy week:
<ul>
<li>
		SPDR S&amp;P 500 ETF Trust (NYSE: <a class="ticker" href="/stock/spy#NYSE">SPY</a>) was down 5 percent.</li>
<li>
		SPDR Dow Jones Industrial Average ETF (NYSE: <a class="ticker" href="/stock/dia#NYSE">DIA</a>) was down 5 percent.</li>
<li>
		PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ: <a class="ticker" href="/stock/qqq#NASDAQ">QQQ</a>) was down 5 percent.</li>
<li>
		iPath S&amp;P 500 VIX Short Term Futures TM ETN (NYSE: <a class="ticker" href="/stock/vxx#NYSE">VXX</a>) was up 48.8 percent</li>
<li>
		SPDR Gold Trust (ETF) (NYSE: <a class="ticker" href="/stock/gld#NYSE">GLD</a>) was down 1.2 percent.</li>
<li>
		iShares Barclays 20+ Yr Treas.Bond (ETF) (NASDAQ: <a class="ticker" href="/stock/tlt#NASDAQ">TLT</a>) was down 1.3 percent.</li>
</ul>

Bonds

Futures

AMTD

SPDR Dow Jones Industrial Average ETF Trust

iShares Trust Barclays 20+ Year Treasury Bond Fund

One Crazy Week In The Stock Market

In case you missed it, here are some of Benzinga&#39;s top stories from Thursday, Feb. 8, 2018.
<h3>
	Exclusive Interview With Helios and Matheson CEO</h3>
Helios and Matheson Analytics Inc (NASDAQ: <a class="ticker" href="/stock/hmny#NASDAQ">HMNY</a>) CEO Ted Farnsworth took time to chat with Benzinga&rsquo;s Brett Hershman in a revealing interview that moved the stock. Learn why the company purchased MoviePass, and why it seeks to partner with everyone from ride-sharing companies to Netflix, Inc (NASDAQ: <a class="ticker" href="/stock/nflx#NASDAQ">NFLX</a>), in &ldquo;<a href="https://www.benzinga.com/news/18/02/11160728/moviepass-to-offer-7-95-subscription-launch-streaming-bundle-package-in-push-to-">MoviePass To Offer $7.95 Subscription, Launch Streaming-Bundle Package In Push To Get 5 Million Subscribers</a>.&rdquo;
<h3>
	Which Social Is Snap Following In The Footsteps Of?</h3>
Snap Inc (NYSE: <a class="ticker" href="/stock/snap#NYSE">SNAP</a>) rose this week after the company reported what was perhaps its only impressive quarter since it turned public in 2017. Statista took a look at the company&rsquo;s subscriber growth to see if it&rsquo;s on the path to becoming the next Facebook Inc (NASDAQ: <a class="ticker" href="/stock/fb#NASDAQ">FB</a>) or Twitter Inc (NYSE: <a class="ticker" href="/stock/twtr#NYSE">TWTR</a>). Jayson <a href="https://www.benzinga.com/top-stories/18/02/11156912/chart-snaps-trajectory-looks-more-like-twitter-than-facebook">Derrick reports</a>.
Related Link: <a href="https://www.benzinga.com/news/earnings/18/02/11158056/citrons-andrew-left-sells-twitter-stake-congrats-to-them">Citron&#39;s Andrew Left Sells Twitter Stake: &#39;Congrats To Them&#39;</a>
<h3>
	The VIX, The VIX, The VIX Is On Fire</h3>
Still mystified by the funds ProShares Short VIX Short-Term Futures (NYSE: <a class="ticker" href="/stock/svxy#NYSE">SVXY</a>) and the VelocityShares Daily Inverse XIV Short-Term ETN (NASDAQ: <a class="ticker" href="/stock/xiv#NASDAQ">XIV</a>)? Bernstein&rsquo;s Noah Weisberger explains at least some aspects of these products create volatility. Check out Wayne Duggan&rsquo;s &ldquo;<a href="https://www.benzinga.com/analyst-ratings/analyst-color/18/02/11158220/analyst-explains-the-inverse-volatility-fund-feedback-l">Analyst Explains The Inverse Volatility Fund Feedback Loop</a>.&rdquo;
<h3>
	NVIDIA Rules</h3>
NVIDIA Corporation (NASDAQ: <a class="ticker" href="/stock/nvda#NASDAQ">NVDA</a>) reported a sizeable Q4 earnings beat sending shares spiking higher after hours. Get all the details in Brett Hershman&rsquo;s &ldquo;<a href="https://www.benzinga.com/news/earnings/18/02/11162732/nvidia-caps-record-year-with-big-q4-earnings-beat">Nvidia Caps Record Year With Big Q4 Earnings Beat</a>.&rdquo;
<iframe allow="autoplay; encrypted-media" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/HVXKEQFpcHg" width="560"></iframe>

After-Hours Center

Tech

Interview

HMNY

NFLX

NVDA

SNAP

TWTR

ICYMI: Nvidia, Snap, The VIX, And MoviePass

Inverse volatility funds, including the Credit Suisse AG &ndash; VelocityShares Daily Inverse VIX Short Term ETN (NASDAQ: <a class="ticker" href="/stock/xiv#NASDAQ">XIV</a>) and the ProShares Trust II (NYSE: <a class="ticker" href="/stock/svxy#NYSE">SVXY</a>), have taken much of the blame for the historical spike in stock market volatility this week.
In a note on Thursday, Bernstein analyst Noah Weisberger explained the two ways that <a href="https://www.benzinga.com/news/18/02/11146594/the-proshares-short-volatility-etf-lives-to-fight-another-day">these inverse volatility funds</a> create feedback loops that drive volatility.
The trigger of these feedback loops is the constant rebalancing that exchange-traded notes like the XIV and the SVXY require. These funds require two different types of rebalancing&mdash;leverage rebalancing and roll-over rebalancing.
<h3>
	Roll-Over Rebalancing</h3>
Roll-over rebalancing is related to the fact that the short-term volatility futures contracts expire on a daily basis. Inverse volatility ETNs hold short positions in these futures contracts, and short sellers know buying the underlying contracts is part of the process of closing out these short positions.
&ldquo;So, to maintain a constant maturity portfolio, ETN issuers are buying front month VIX contracts and selling - or getting more short - second month future contracts each day,&rdquo; Weisberger wrote.
<h3>
	Leverage Rebalancing</h3>
The second type of rebalancing is leverage rebalancing. These inverse volatility ETNs are designed to be reverse-levered to the VIX. This leverage creates a unique situation where the assets under management of the funds decrease as the VIX rises. As the value of the VIX contracts being shorted increases, the fund also becomes &ldquo;more short&rdquo; the VIX, a phenomenon which must be offset by reducing short holdings, which once again involves buying underlying VIX futures contracts.
&ldquo;This buying pushes the volatility higher still, reducing AUM further, and making the issuer&#39;s hedging portfolio notionally more short, inducing further VIX futures buying to resize the portfolio to shrinking AUM,&rdquo; Weisberger said.
<h3>
	Volatility Cascade</h3>
In a nutshell, rising volatility results in these inverse volatility funds being forced to go long volatility to maintain their inverse leverage, but this phenomenon can easily produce the type of cascading impact that happened on Monday during the huge market sell-off.
In fact, things got so far out of control during Monday&#39;s after-hours trading session that the XIV dropped 80 percent from its previous day&rsquo;s close, triggering an &ldquo;acceleration event&rdquo; that prompted Credit Suisse&nbsp;(NYSE: <a class="ticker" href="/stock/cs#NYSE">CS</a>) <a href="https://www.benzinga.com/news/18/02/11141389/credit-suisse-will-liquidate-the-xiv-short-term-volatility-etn">to liquidate</a> the fund.
The SVXY has survived the week, but the fund is now down 90.7 percent year-to-date.
Related Links:
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/18/02/11142931/3-other-inverse-volatility-funds-at-risk">3 Other Inverse Volatility Funds At Risk</a>
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/18/02/11142233/what-to-make-of-the-market-sell-off-yields-value-plays-">What To Make Of The Market Sell-Off: Yields, Value Plays, And Volatility</a>
<iframe allow="autoplay; encrypted-media" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/dUAHXWWLZgA" width="560"></iframe>

Analyst Explains The Inverse Volatility Fund Feedback Loop

In case you missed it, here are some of Benzinga&#39;s top stories from Wednesday, Feb. 7, 2018.
<h3>
	Snap Pops On Earnings</h3>
Does one good quarter make Snap Inc (NYSE: <a class="ticker" href="/stock/snap#NYSE">SNAP</a>) stock worth buying? Apparently so, in Bank of America&rsquo;s view. See what has the sell-side firm so bullish on the camera company and Snapchat parent in Jayson Derrick&rsquo;s &ldquo;<a href="https://www.benzinga.com/analyst-ratings/analyst-color/18/02/11148534/snaps-q4-points-to-material-multiyear-growth-ahead-bofa">Snap&#39;s Q4 Points To &#39;Material Multiyear Growth&#39; Ahead, BofA Says In Upgrade</a>.&rdquo;
Related Link: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/18/02/11151079/analyst-amid-low-expectations-investors-should-be-encou">Analyst: Amid Low Expectations, Investors Should Be Encouraged By Snap&#39;s Execution</a>
<h3>
	One Inverse VIX Instrument To Keep Trading</h3>
Todd Shriber examines the outlook for the ProShares Short VIX Short-Term Futures (NYSE: <a class="ticker" href="/stock/svxy#NYSE">SVXY</a>) in the wake of the implosion of the VelocityShares Daily Inverse XIV Short-Term ETN (NASDAQ: <a class="ticker" href="/stock/xiv#NASDAQ">XIV</a>). Check out &ldquo;<a href="https://www.benzinga.com/news/18/02/11146594/the-proshares-short-volatility-etf-lives-to-fight-another-day">The ProShares Short Volatility ETF Lives To Fight Another Day</a>.&rdquo;
<h3>
	&ldquo;Which Chipmaker Leads The Autonomous Driving Space?&rdquo;</h3>
From NVIDIA Corporation (NASDAQ: <a class="ticker" href="/stock/nvda#NASDAQ">NVDA</a>) to Advanced Micro Devices, Inc (NASDAQ: <a class="ticker" href="/stock/amd#NASDAQ">AMD</a>), semiconductor manufacturers continue to vie for supremacy in autonomous vehicles. Get expert perspective and exclusive comments about the space, as Elizabeth <a href="https://www.benzinga.com/top-stories/18/02/11148965/which-chipmaker-leads-the-autonomous-driving-space#/null">Balboa reports</a>.

Pre-Market Outlook

ICYMI: Snap Earnings, VIX Instruments, AMD And Nvidia

Following Monday&#39;s jaw-dropping after-hours plunge for the VelocityShares Daily Inverse VIX Short-Term ETN (NASDAQ: <a class="ticker" href="/stock/xiv#NASDAQ">XIV</a>), market observers and traders feverishly speculated Credit Suisse (NYSE: <a class="ticker" href="/stock/cs#NYSE">CS</a>), XIV&#39;s issuing bank, would be forced to terminate the exchange-traded note.
As <a href="https://www.benzinga.com/news/18/02/11141389/credit-suisse-will-liquidate-the-xiv-short-term-volatility-etn">Benzinga reported Tuesday</a>, &ldquo;XIV was halted Tuesday, and Credit Suisse subsequently issued a press release saying it will be delivering an irrevocable call notice to The Depository Trust Company for the XIV on Feb. 15. It also named Feb. 21 as the acceleration date for the XIV.&rdquo;
&ldquo;On the acceleration date, investors will receive a cash payment per ETN in an amount equal to the closing indicative value of XIV on the accelerated valuation date,&rdquo; the statement said. &ldquo;The last day of trading for XIV is expected to be February 20, 2018.&rdquo;
The XIV fell more than 80 percent and was down another 13 percent Wednesday.
<h3>
	At Least One Survivor</h3>
Immediately following XIV&#39;s catastrophic after-hours performance, there was ample speculation that <a href="https://www.benzinga.com/analyst-ratings/analyst-color/18/02/11142931/3-other-inverse-volatility-funds-at-risk">other volatility products could also be terminated</a>. Some of that speculation highlighted the ProShares Short VIX Short-Term Futures ETF (NYSE: <a class="ticker" href="/stock/svxy#NYSE">SVXY</a>). However, ProShares moved to quell that speculation.
Maryland-based ProShares said in a <a href="http://www.proshares.com/news/svxy_statement.html">brief statement</a>&nbsp;Tuesday that SVXY&#39;s after-hours action on Monday, which saw the product tumble, &ldquo;was consistent with its objective and reflected the changes in the level of its underlying index. We expect the fund to be open for trading today and we intend to continue to manage the fund as usual.&rdquo;
SVXY, which had $770.2 million in assets under management at the end of 2017, &ldquo;provides short exposure to the S&amp;P 500 VIX Short-Term Futures Index, which measures the returns of a portfolio of monthly VIX futures contracts with a weighted average of one month to expiration,&rdquo; <a href="http://www.proshares.com/funds/svxy.html">according to ProShares</a>.
The SVXY was down about 1 percent Wednesday.
<h3>
	Still Popular </h3>
Assuming the data are correct, SVXY either remains popular with traders, its slide encouraged dip buying or both. Since the start of this year, SVXY has seen $1.54 billion of inflows as of Feb. 6, <a href="http://www.etf.com/etfanalytics/etf-fund-flows-tool">according to ETF.com</a>.
Related Links:
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/02/11130867/a-nifty-idea-for-international-dividends">A Neat International Dividend ETF</a>
<a href="https://www.benzinga.com/news/18/02/11138352/its-going-to-be-a-wild-day-for-xiv-the-credit-suisse-volatility-etn">A Crazy Day Awaits This Volatility ETN</a>

Short Ideas

The ProShares Short Volatility ETF Lives To Fight Another Day

In case you missed it, here are some of Benzinga&#39;s top stories from Tuesday, February 6th, 2018.
<h3>
	The Inverse Volatility ETN Everyone&rsquo;s Talking About</h3>
Todd Shriber examines the tumble taken by VelocityShares Daily Inverse VIX Short-Term ETN (NASDAQ: <a class="ticker" href="/stock/xiv#NASDAQ">XIV</a>). Check out &ldquo;<a href="https://www.benzinga.com/news/18/02/11138352/its-going-to-be-a-wild-day-for-xiv-the-credit-suisse-volatility-etn">It&#39;s Going To Be A Wild Day For XIV, The Credit Suisse Volatility ETN</a>.&rdquo;
Speaking of the XIV, a product of Credit Suisse Group (NYSE: <a class="ticker" href="/stock/cs#NYSE">CS</a>), turns out its precipitous decline triggered an &ldquo;acceleration event.&rdquo; If you&rsquo;re curious to learn what means, read Wayne Duggan&rsquo;s &ldquo;<a href="https://www.benzinga.com/news/18/02/11141389/credit-suisse-will-liquidate-the-xiv-short-term-volatility-etn">Credit Suisse Will Liquidate The XIV Short-Term Volatility ETN</a>.&rdquo;
Related Link: <a href="https://www.benzinga.com/general/education/17/08/9911978/what-is-the-vix-and-what-does-it-do">What Is The VIX, And What Does It Do?</a>
But the XIV isn&rsquo;t the only inverse volatility fund at risk. Get the latest on the ProShares Trust II (NYSE: <a class="ticker" href="/stock/svxy#NYSE">SVXY</a>), VelocityShares Daily Inverse Vix Medium-Term ETN (NASDAQ: <a class="ticker" href="/stock/ziv#NASDAQ">ZIV</a>), and the UBS AG VelocityShares VIX Short Volatility Hedged ETN linked to the S&amp;P 500 VIX Futures (NYSE: <a class="ticker" href="/stock/xivh#NYSE">XIVH</a>), as Wayne<a href="https://www.benzinga.com/analyst-ratings/analyst-color/18/02/11142931/3-other-inverse-volatility-funds-at-risk"> Duggan reports</a>.
<h3>
	Oh Yeah, It&rsquo;s Still Earnings Season</h3>
Cleanse your mental palate with some good old-fashioned earnings season news. Micron Technology, Inc (NASDAQ: <a class="ticker" href="/stock/mu#NASDAQ">MU</a>) shares rose Tuesday after the company issued an improved outlook for Q2. See why KeyBanc analysts say the stock is too cheap to overlook in Jayson Derrick&rsquo;s &ldquo;<a href="https://www.benzinga.com/analyst-ratings/analyst-color/18/02/11140714/micron-lifts-q2-guidance-keybanc-says-stock-is-a-value-">Micron Lifts Q2 Guidance; KeyBanc Says Stock Is A Value Among Peers</a>.&rdquo;

XIVH

ICYMI: The Inverse VIX ETN Bloodbath

It&rsquo;s been a busy few days for <a href="http://www.benzinga.com/investing/best-online-brokerage/">brokerages</a> and robo advisors, and the early indications are in: retail investors were not only unfazed by the recent sell-off, but they were eager to buy the dip.
&quot;We saw a large spike in transaction volume and trading activity on the platform [Monday] as well as [Tuesday] morning,&rdquo; Jack Randall, head of communications at Robinhood, told Benzinga. &ldquo;Retail investors deposited 20 percent more funds into their Robinhood accounts [Monday] than they did on Friday.&rdquo;
Fidelity Investments saw similar spikes in trading volume.
&ldquo;Friday was the second busiest trading day in Fidelity&rsquo;s history, and Monday was THE busiest trading day ever,&rdquo; Robert Beauregard, director of public relations at Fidelity Investments, told Benzinga in an email.
The reaction wasn&rsquo;t out of the ordinary. In fact, the behavior was consistent with that seen after Brexit or during the August 2015 Dow drop, Randall said.
TD Ameritrade Holding Corp. (NASDAQ: <a class="ticker" href="/stock/amtd#NASDAQ">AMTD</a>) generally expects to see increases in trading volume at elevated volatility levels, according to senior trading specialist Shawn Cruz.
<h3>
	Buying The Dip</h3>
Analysts <a href="https://www.benzinga.com/analyst-ratings/analyst-color/18/02/11142233/what-to-make-of-the-market-sell-off-yields-value-plays-">attributed </a>Monday&rsquo;s alarming sell-off to a jump in Treasury yields, to quant funds deleveraging <a href="http://www.benzinga.com/general/education/17/08/9911978/what-is-the-vix-and-what-does-it-do">volatility-related positions</a> or to an overdue correction rather than any <a href="https://www.benzinga.com/media/cnbc/18/02/11140331/2-pros-break-down-the-market-meltdown">fundamental </a>factors. For the most part, they saw opportunity to capitalize, and so did investors.
&quot;We&#39;re seeing many customers making deposits looking to buy the dip,&rdquo; Joe Ziemer, vice president of communications at Betterment, told Benzinga.
Fidelity clients were bullish to an unusual extent Friday, when the firm registered 52 percent more buys than sells or a 1.52 ratio. By Tuesday close, that ratio had extended to 1.7.&nbsp;For comparison, the Thursday ratio was 1.24, Monday 1.09 and 2017 full-year 1.13.
David Russell, vice president at TradeStation, considered it panic buying &mdash; a moment proving the merits of hedge strategies and vigilance.
&ldquo;It looks to me like there was complacency,&rdquo; Russell told Benzinga. &ldquo;The VIX was at such a low level. There were a lot of people short volatility, and then it started to spike and they needed to cover everything at once.&rdquo;
<h3>
	What Are They Buying?</h3>
Regardless of their reasons, investors were buying, and their purchases weren&rsquo;t entirely standard.
On Monday, TradeStation clients were more active in ProShares Trust Ultra VIX Short Term Futures ETF (NYSE: <a class="ticker" href="/stock/uvxy#NYSE">UVXY</a>), ProShares Trust II (NYSE: <a class="ticker" href="/stock/svxy#NYSE">SVXY</a>) and iPath S&amp;P 500 VIX Short Term Futures TM ETN (NYSE: <a class="ticker" href="/stock/vxx#NYSE">VXX</a>) than in Amazon.com, Inc. (NASDAQ: <a class="ticker" href="/stock/amzn#NASDAQ">AMZN</a>) and NVIDIA Corporation (NASDAQ: <a class="ticker" href="/stock/nvda#NASDAQ">NVDA</a>).
On Tuesday, Fidelity investors were back targeting typical trenders: Apple Inc. (NASDAQ: <a class="ticker" href="/stock/aapl#NASDAQ">AAPL</a>), Amazon, Nvidia and SPDR S&amp;P 500 ETF Trust (NYSE: <a class="ticker" href="/stock/spy#NYSE">SPY</a>).
But Credit Suisse AG - VelocityShares Daily Inverse XIV Short (NYSE: <a class="ticker" href="/stock/xiv#NYSE">XIV</a>) and SVXY short-term VIX futures also saw strong buy-favored traffic. UVXY registered great sell-heavy activity while Credit Suisse AG - VelocityShares Daily 2x VIX Short Term (NYSE: <a class="ticker" href="/stock/tvix#NYSE">TVIX</a>), the eighth most popular trade, saw a near even mix of buys and sells.
&ldquo;In the near term, there will likely be more back-and-forth trading until the market can re-establish some levels,&rdquo; Cruz said. &ldquo;But for now, things seem to be consolidating and we&rsquo;re starting to see investors cautiously moving back into equities.&rdquo;
Taylor Cox and Spencer Israel contributed reporting.
Related Links:
<a href="https://www.benzinga.com/news/18/02/11142221/when-markets-crash-what-do-people-google">When Markets Crash, What Do People Google?</a>
<a href="https://www.benzinga.com/news/18/02/11141389/credit-suisse-will-liquidate-the-xiv-short-term-volatility-etn">Credit Suisse Will Liquidate The XIV Short-Term Volatility ETN </a>

Psychology

Exclusives

General

AMZN

'Busiest Trading Day Ever': Brokerages, Retail Clients React To Volatility

Credit Suisse Group AG (ADR) (NYSE: <a class="ticker" href="/stock/cs#NYSE">CS</a>) took the trading community by surprise when <a href="https://www.benzinga.com/news/18/02/11141389/credit-suisse-will-liquidate-the-xiv-short-term-volatility-etn">the firm announced it will liquidate</a>&nbsp;the popular Credit Suisse AG &ndash; VelocityShares Daily Inverse VIX Short Term ETN (NASDAQ: <a class="ticker" href="/stock/xiv#NASDAQ">XIV</a>) after the fund plunged more than 80 percent Monday, triggering an &ldquo;acceleration event.&rdquo;
The XIV was halted Tuesday, but the announcement of its liquidation has traders concerned about the fate of other inverse funds that are tied to the CBOE Volatility index (VIX), particularly if the <a href="https://www.benzinga.com/news/18/02/11142221/when-markets-crash-what-do-people-google">stock market sell-off</a> gains momentum in coming days.
<h3>
	SVXY Safe For Now</h3>
The ProShares Trust II (NYSE: <a class="ticker" href="/stock/svxy#NYSE">SVXY</a>) fund, another popular inverse volatility fund with averaging daily trading volume of more than 66 million, was also halted =Tuesday. Some traders were initially speculating ProShares would also be forced to liquidate the SVXY, but the firm assured investors the SVXY is alive and well.
&ldquo;We expect the fund to be open for trading today and we intend to continue to manage the fund as usual,&rdquo; ProShares said in a statement.
However, once the fund opened for trading at 11:35 a.m. ET, it promptly tanked 83.6 percent and is down more than 90 percent since Thursday&rsquo;s close.
<h3>
	Other Funds At Risk</h3>
The Credit Suisse AG &ndash; VelocityShares Daily Inverse VIX Medium Term ETN (NASDAQ: <a class="ticker" href="/stock/ziv#NASDAQ">ZIV</a>) was also halted Tuesday and has yet to resume trading as of 12:30 p.m. ET. Credit Suisse didn&#39;t mention the ZIV in its announcement about the XIV. Like the XIV, the ZIV is tied to VIX futures contracts, but the ZIV contracts are medium-term rather than short-term.
The UBS AG VelocityShares VIX Short Volatility Hedged ETN linked to the S&amp;P 500 VIX Futures&nbsp;(NYSE: <a class="ticker" href="/stock/xivh#NYSE">XIVH</a>) plummeted 63.9 percent Tuesday and is now down 72.9 percent in the past three sessions.
<h3>
	Technical Volatility</h3>
Even the short volatility instruments that survived Monday&#39;s meltdown still aren&#39;t out of the woods just yet. The S&amp;P 500 stabilized on Tuesday, but volatility was still on the rise.
Fortunately, Barclays analyst Maneesh Deshpande said Tuesday much of the VIX&rsquo;s increase has been technical in nature and not a result of an uptick in risk perception.
&ldquo;While the initial increase was driven by the selloff in equities, the increase in the VIX index was due to a lack of liquidity and the bulk of the move in VIX futures happened after the close and demand was likely driven by leveraged VIX ETP managers,&rdquo; Deshpande said in a note.
The iPath S&amp;P 500 VIX Short Term Futures TM ETN (NYSE: <a class="ticker" href="/stock/vxx#NYSE">VXX</a>) is up another 15.9 percent in mid-day trading.
Relayed Links:
<a href="https://www.benzinga.com/general/education/17/08/9911978/what-is-the-vix-and-what-does-it-do">What Is The VIX, And What Does It Do?</a>
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/18/02/11142233/what-to-make-of-the-market-sell-off-yields-value-plays-">What To Make Of The Market Sell-Off: Yields, Value Plays, And Volatility</a>

Movers

3 Other Inverse Volatility Funds At Risk

ProShares Short VIX Short-Term Futures Shares Resume Trade, Plunge 84%, Halted On Circuit Breaker

ProShares Says SVXY Should be Opening by 12:30 PM ET at Latest

The ongoing controversy surrounding volatility exchange-traded products is poised to grow. On Monday, the VelocityShares Daily Inverse VIX Short-Term ETN (NASDAQ: <a class="ticker" href="/stock/xiv#NASDAQ">XIV</a>) tumbled 14.3 percent on volume that was nearly quadruple the daily average and almost six times the trailing 20-day average, but that wasn&#39;t the worst of it for the exchange-traded note.
While U.S. markets close at 4 p.m. Eastern time, index values for volatility products settle after-hours. The CBOE Volatility Index, also known as the VIX, ripped higher Monday night, sending inverse volatility ETNs plunging.
Here&#39;s the ugliness straight from the VelocityShares website: XIV&#39;s closing price Monday was $99, but its closing indicative value was $4.22, <a href="http://www.velocitysharesetns.com/xiv">according to issuer data</a>. As of 7:12 a.m. E.T. Tuesday, XIV was sporting a pre-market loss of 84 percent.
Editors note: The XIV was halted Tuesday morning, and Credit Suisse subsequently issued a press release saying <a href="https://www.benzinga.com/news/18/02/11141389/credit-suisse-will-liquidate-the-xiv-short-term-volatility-etn">it will be delivering an irrevocable call notice to The Depository Trust Company for the XIV on Feb. 15</a>. It also named Feb. 21 as the acceleration date for the XIV.
<h3>
	More About XIV</h3>
XIV is designed to deliver the daily inverse performance of the S&amp;P 500 VIX Short-Term Futures index. ETNs are debt instruments, generally issued by a bank. In the case of the VelocityShares ETNs, Credit Suisse AG (NYSE: <a class="ticker" href="/stock/cs#NYSE">CS</a>) is the issuing bank. By one estimate, the bank suffered <a href="http://www.forexlive.com/news/!/the-xiv-is-going-to-be-the-first-big-etf-blowup-and-credit-suisse-is-getting-hit-hard-20180206">a $500 million loss</a> following XIV&#39;s plunge.
Short volatility ETNs have been widely popular in recent years as U.S. equity markets have become increasingly docile, but that trade reversed sharply Monday, stoking speculation of a termination for XIV and some rival products. In fact, some prescient market observers saw this coming.
&ldquo;For XIV ETF a termination event is triggered if the daily percentage drop exceeds 80%. Then a full wipe-out is avoided insofar as it is preceded by a game-over event,&rdquo; said Francesco Filia of <a href="http://www.fasanara.com/">Fasanara Capital</a> in a July 2017 post on <a href="https://www.zerohedge.com/news/2017-07-20/nightmare-scenario-quantifying-damage-sudden-vix-spike">ZeroHedge</a>.
<blockquote class="twitter-tweet" data-partner="tweetdeck">Credit Suisse has not yet made a decision with regard to calling an acceleration of the <a href="https://twitter.com/search?q=%24XIV&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$XIV</a>, according to a person with direct knowledge of the matter. Credit Suisse is completely hedged against its exposure, the person said.
	&mdash; Leslie Picker (@LesliePicker) <a href="https://twitter.com/LesliePicker/status/960723575941591040?ref_src=twsrc%5Etfw">February 6, 2018</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><h3>
	Not Alone</h3>
XIV wasn&#39;t the only offender among inverse volatility products on Monday. Its stablemate, the VelocityShares Daily Inverse VIX Medium-Term ETN (NASDAQ: <a class="ticker" href="/stock/ziv#NASDAQ">ZIV</a>) closed at $74.54, but slid to closing indicative price of $58.76, <a href="http://www.velocitysharesetns.com/ziv">according to VelocityShares data</a>.
On volume that was more than 10 times the daily average, the ProShares Short VIX Short-Term Futures (NASDAQ: <a class="ticker" href="/stock/svxy#NASDAQ">SVXY</a>) sank nearly 32 percent during regular trading Monday before plunging more than 79 percent in after-hours trading.
&ldquo;SVXY provides short exposure to the S&amp;P 500 VIX Short-Term Futures Index, which measures the returns of a portfolio of monthly VIX futures contracts with a weighted average of one month to expiration,&rdquo;<a href="http://www.proshares.com/funds/svxy.html"> according to Maryland-based ProShares</a>.
That after SVXY&#39;s net asset value jumped 179.1 percent last year. Some market observers are speculating, though it&#39;s not as explicit as in the case of XIV, that SVXY <a href="https://heisenbergreport.com/2018/02/05/hey-guys-it-looks-like-xiv-is-done-the-short-vol-products-are-toast/">could follow a similar</a> termination course.
Related Links:
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/02/11114027/a-new-way-to-view-emerging-markets-bonds">A New Way To View EM Bonds</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/02/11130867/a-nifty-idea-for-international-dividends">A Nifty Idea For International Dividends</a>

It's Going To Be A Wild Day For XIV, The Credit Suisse Volatility ETN

ProShares Short VIX Short-Term Futures ETF (SVXY) Halted; Pending News

Credit Suisse Shares Down 5-6% After Hours Mon. Amid Extreme Volatility, Downside In Several Vix Instruments: VelocityShares Daily Inverse VIX Short Term, Medium Term, ProShares Short VIX Short-Term Futures

ProShares Short VIX Short Term Futures Halted On Circuit Breaker

ProShares Short VIX Short-Term Futures ETF -1x Shares

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ProShares Short VIX Short Term Futures ETF

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ProShares Short VIX Short Term Futures ETF (BATS:SVXY), Informe de interés en corto

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