[TVIX] 2x the Risk of VIX, 4x the Reward?... Far Better Value!
Assuming this next crash roughly matches the last one, a bet on VIX today at $40 would stand to net you up to $80.
A bet on TVIX (which is 2x the velocity/risk of VIX) however at $200 would stand to net you up to $1000.
So in VIX a $100 bet now has confirmed potential of turning into $200 for a 100% ROI.
On TVIX a $100 bet now has confirmed potential of turning into $500 dollars for a 400% return.
It seems the more extreme the crash, the more TVIX stretches to the upside. Should be interesting to see how this one plays out!
This is not investment advice, just my thoughts on relative value of two similar inverse markets.
Good luck with your own strategies!
A bet on TVIX (which is 2x the velocity/risk of VIX) however at $200 would stand to net you up to $1000.
So in VIX a $100 bet now has confirmed potential of turning into $200 for a 100% ROI.
On TVIX a $100 bet now has confirmed potential of turning into $500 dollars for a 400% return.
It seems the more extreme the crash, the more TVIX stretches to the upside. Should be interesting to see how this one plays out!
This is not investment advice, just my thoughts on relative value of two similar inverse markets.
Good luck with your own strategies!
Data analyst with a passion for best fit lines B)
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.