VIX and SXVY question

CudaManiac
CudaManiac ✭
in Other StockCharts Questions
Hello! New member here. I am long the SXVY which is the Proshares Short VIX Short-Term ETF, but it isn't behaving the way I thought it would when I bought in several days ago. (After the huge crash.) Earlier this morning, the VIX was down 4%, but the SXVY was also down about 1%. Since it is the inverse (supposedly) of the VIX, what's up with that? Anyone on here have experience with this ETF? Thanks for your help!

Comments

  • markd
    markd mod
    Way too sophisticated for me to deal with, but here's a very detailed explanation of how these things work:

    https://sixfigureinvesting.com/2016/08/how-does-svxy-work/
  • daniel_fromcebu
    daniel_fromcebu ✭
    edited May 2018
    It's because the ATR of SVXY is only around .40 while the VIX is more than 2.0.. ATR is the average true range..it's how much the ETF, STOCKS move up in a day..that is why when you play Options, check that the ATR is high so that it will go up from your desired strike..

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