Barron’s article on XIV/SVXY

A lot has been written and theorized about exactly what happened Monday night but this article has some deeper analysis that I hadn’t read elsewhere. It goes into detail about the different reasons SVXY survived and XIV didn’t. One factor that was interesting (and they admit it was their deduction): the fund managers for SVXY waited for the futures to come down after the spike at the close Monday before covering their short position. Good strategy in hindsight but they took a risk. Interesting read.

I hope you all are having a good weekend. Thanks for all your posts. Like many of you I’ve been assigned a lot of this stock and plan to implement some of these strategies to work down basis and eventually let it go at much better levels. It will take some time but we’ll get through it. Thanks again Jeff for The Bistro. I’m glad we are all here.