The biggest black swan event of our life times

Ok so this fund gets liquidated, but the media will ignore it and pretend to be cool with it.

We need Lehman brothers to die or something.

IT'S BECAUSE I OWNED 5 SHARES OF IT LOL

I don’t think you understand how many people have positions in this.
I genuinely cannot fathom what is gonna happen to the VIX tomorrow.

Like I said, I traded it short for years; absolutely no one saw this coming. It genuinely may be the next mortgage backed security.

AHHHHHHHHHHHHHHHHHHHH

There's over $6tn in notional short volatility positions out there, or at least was before today. We will see lights out at several medium size financial institutions at the very least.

...

XIV is kill (literally terminated)

Real vix futures will be down 30% min tomorrow

XIV is an inverse of the VIX futures which is the volatility measure for the stock market. During the past year since Trump got elected the XIV has steadily gained a few % each day. It got fucking smoked today as the VIX went to the redline for most of the day. I don't know why he posted a chart of it at 20 bucks. It's in the 80s even during afterhours.

Suspended markets
Extended auctions
Seen it all before

Please say you ain't holding any link

Nothing is happening tomorrow, the dip has already been absorbed.

cnbc.com/2018/02/05/xiv-exchange-traded-security-linked-to-volatility-plummets-80-percent.html

Oh fuck.

People are shorting VIX.
VIX spikes.
If you are shorting, and the underlying commodity spikes, the loss is potentially infinite.
A lot of people are going to get margin called tomorrow.
Then the effects will cascade through the system.
It's 2008 again. Fuck. Fuck. Fuck.

Ah yeah, I just looked using my brokerage application. Just googling it showed it in the mid 80s.

XIV is dead, the afterhours brought it down to fucking $10.

TFW I pulled out of the crypto market, relieved, then put $570 into XIV at $93.50 a share, (the best price during open hours) and the price drops to $10 afterhours. (Probably gonna be zero tomorrow.

I survived the crypto crash just to get fucked over in the regular market.

Nah. VIX will be up at minimum another 100%. These positions are all trying desperately to cover their shorts. They’ve been so utterly blown out of their positions I won’t be surprised to see more than one fund shutter on this.

Like, I don’t know the extent of it since I don’t have my Bloomberg in front of me; but I’ll go out on a limb and say it’s going to be devestatingly red tomorrow. Literally no one saw this coming.

Holy shit how? I thought you assholes were memeing with the "XIV is dead" shit. That has been literally the highest volume trade in recent months.

no

okay I just bought 5k of SVXY am I fucked?

bloomberg.com/news/articles/2018-01-26/-50-cent-a-window-shopper-no-more-on-big-buy-of-march-vix-calls

With XIV getting fucking blown up 50-Cent must be fucking rich right now. He's been hedging since May.

you dont understand. an 80% drop TERMINATES the fund

nvm, i thought you were referring to xiv, not vix.

Right, I understand XIV is terminated.
But most funds don’t use XIV. They just trade the futures directly. When I used to do it I also traded the futures directly. Like I said, I’m not at work so I can’t check. But people are scrambling.

It terminates XIV not VIX. He may well be correct, the spike in VIX could continue tomorrow due to all the short vol positions and risk parity being unwound.

... so in a nutshell crypto is shitfucked?

Looks like a scam if I've ever seen one... "Hey bud, wanna bet the glasses will stay on this table? Yeah, whoops how clumsy of me I just dropped them. Sorry now all your life savings are belong to (((us))). Better luck next time!"

You have to be bitconneeeeeeeeeeeeeeeeeeeeeeeeec-level stupid to invest in that shit, these cunts deserved to get liquidated.

What is the market cap of xiv? I'm a coiner, not a stocker. Is every big fund in this ?

>>absolutely no one saw this coming

You're joking right? I've read countless articles about how people shorting VIX were going to get crushed once the VIX returned to its mean. I've also read countless articles about how the leveraged inverse VIX holdings would basically be rendered worthless in a single day once we had a decent sized correction. If you didn't see this as a possibility then you're a moron.

largest trade in the market right now, and the fund is terminated as of this evening...

No. Normies investing in retarded wall street securities are, though.

I think it was in the billions. But I couldn’t even begin to estimate the total tied up in the trade.

Mostly retail traders

Lots of hard conversations with the wife tonight pretty sure svxy got the kill shot also

Inverse volatility index, you get to buy or sell volatility or stability as a commodity. You can even short the futures or it's derivatives.
it's another completely safe financial innovation brought to you by goldman sachs. there's nothing to see here at all.

Guys go all in! It's mooning!

Fiddy is /ournig/

>gets rich, doesn't die tryin
>makes millions accepting bitcoin for his albums
>made money on fucking vitamin water, top kek
>declared bankruptcy to avoid losing his money to some thottie
>now has made money buying up VIX calls

ur lucky you only put 570 dang

Wrong Fiddy. This is a guy who would buy a specific set of options for the VIX month after month. He just made fucking bank today.

They were always the minority though. Everyone has understood the risk of it, but when I say no one saw it coming, I mean no one saw over a 100% move in VIX being a possibility, I may be wrong but it’s literally never happened as long as VIX has moved.

Every person I’ve ever spoken with has stated that a move like this blowing up XIV wasn’t a realistic possibility in their lifetime. Like I said, the new mortgage backed security.

I bought some at $30 and $11, we'll see what tomorrow brings.

At least I get to be part of history :'(

Capped this because /bizlets/ will talk of this day for years

I wouldn’t stress it too much. Claim it back on the taxes and buy whatever dip is coming. I’ve been through it before too friendo.

Sad!

Yeah, I was correct. It’s the largest VIX move in history.

>seems like a good time to buy

Fucking retards I swear.

Nice meme

>relentlessly tested

all those who are invested will get fucked. but why this is such a big deal and what will happen tomorrow?

>$4m of own and others funds gambled on a financial hedging instrument

a huge portion of the market is exposed to this position. its a bomb about to go off tomorrow morning

See

I'm reading some people talking about Credit Suisse, anybody got any details?

> that fucking after-hours drop

Jesus Christ.

sixfigureinvesting.com/2011/06/ivo-and-xiv-termination-events/

why would you short the vix after how friday went down

>TFW I pulled out of the crypto market, relieved,

eternal bulls

status quo, "btfd"

the majority of the market is filled with QE babbys

why did it collapse so hard after hours?

this was their plan

It's possible that a crash after hours is a loophole the prevents a termination. Very suspect that the crash didn't begin until right after close.

this most market participants in the short vol complex have never seen a bear marker let alone traded through one

is gold gonna go up?

it's time to get crucified for having unconditional love for all humans

>backtesting
lol

Feds going on a buying spree tomoroow lol might even save credit suisse

more paper shorts as usual

>crypto is a scam, it drops double digit % all the time and isn't backed up by big finance, unlike my boomer shares
>I only invest in things that are on the American market because they are safe
>what does termination mean and where is the nearest rope shop

Memecoins are actually /ourinvestment/ because if an idiot buys a bitcoin he still has a bitcoin when the market crashes.

Margin calls.

Most of the price drop happened during open hours, I thought the XIV would reflect that, and the VIX was already slowing down growth at that point. I bought in at the cheapest point during open hours, then I got fucked because I have absolutely no clue what happened after hours and no way to trade after hours.

this shit was planned. They are going to use "after market" as an excuse not to terminate the fund tomorrow

Post current vix positions

God I hope so

i really dont get vix trading, it's a reactive index completely. very hard to trade just gamble, just trade dow

So should I buy in tomorrow?

t. XIV bagholder

would be interesting to see it go from 10 to 1 tomorrow, causing a termination anyways

What if it goes from $10 back up to $100 tho

Are you the same guy that said vix sounded like a good buy and then asked what termination meant?

Vix is dead with all of its holders. Credit suisse will look to protect themselves here.

Its only a possibility because of all of the short/ultra short ETN's. Once it moves higher the ETN's have to buy VIX to cover, which leads to higher VIX, which means the short/ultra shorts have to buy more VIX. Its a cascading loop of fuck. Its the same with any short/ultra short ETN, if you get a decent sized move up in the underlying asset you're going to see a cascading loop of fuck. I've been waiting for this day for over a year to see it all actually play out.

what is XIV?
index fund numba 19?

DEAD GAME
DEAD FINANCIAL PRODUCT
DEAD STOCK MARKET

Is that the famed iron-handed americans I keep hearing about?

>reading about XIV
>"XIV is the VelocityShares Daily Inverse VIX Short-Term ETN"
>my fucking face

People complain that crypto is hard to get into / understand. jesus christ. Traditional markets have instruments a thousand times more contrived than even the scammiest cryptocoin. I hope the while derivatives market goes up in flames, who cares if it craters the world economy if wipes the smug look off wall street faggot's faces.

>leveraged inverse VIX holdings
>(((financial degeneracy intensifies)))

Guys I have 80 IQ, and can't understand what you're saying.

Are we all gonna be poor now?

>It is hard to tell who is exactly holding this short-term oriented security at this time. Filings from back in September show Credit Suisse, Deutsche Asset Management, Citadel Advisors, Flow Traders, and Two Sigma as the top holders.

Can't wait for WW3

>>leveraged inverse VIX holdings
absolutely everything about that just sounds like the jewiest wallstreet fuckery in existence. Allowing financial products like this to exist is irresponsible and i'm so excited for everyone to learn their fucking lesson

I really hope this is a fake. If not, I see a lot of suicides starting tomorrow.

It's worse than link