UVIX Reverse Split January 25th, 2023

Recently, Volatility Shares announced a 1:5 reverse split for UVIX, effective at market open January 25th, 2023. Since its inception in March 2022 UVIX’s decay rate has averaged around 13% per month.  Some investors anticipate significant price moves in UVIX motivated by a reverse split.  I’m not in that camp.  UVIX’s price is tied to VIX futures’ price, which couldn’t care less about UVIX’s share price.  …

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Precisely Forecasting Price Ranges with Volatility

Using a tool like Bollinger Bands® to forecast future price ranges is a time-honored technique but its calculations are simplified and in some situations flawed. Incorporating the log-normal nature of stock prices into the calculations gives better answers. One greed-inducing aspect of volatility is that it enables us to make theoretically sound forecasts about the future.  It doesn’t matter whether it’s stock prices, annual rainfall, …

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How Does VelocityShares’ ZIV Work?

Update Effective July 2nd ZIV stopped trading on national exchanges (press release). The issuer, Credit Suisse (CS) halted share creations effective July 3rd but is not terminating the fund. They reserve the right to do so but don’t have to until 2030. ZIV is currently trading on OTC exchanges, e.g., OTCMarkets.com and is currently trading pretty close to its IV price, the theoretic value of …

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