(02-06-2018 12:44 PM)stinkfist Wrote:  

(02-06-2018 12:35 PM)aTxTIGER Wrote:  

(02-06-2018 12:28 PM)stinkfist Wrote:  

(02-06-2018 12:20 PM)aTxTIGER Wrote:  

(02-06-2018 12:19 PM)Kronke Wrote:  From reddit so take it with a grain of salt, but a supposed trader left holding the bag in XIV lost $4 million, including $1.5 million in other people's money. Brutal.



https://www.marketwatch.com/story/xiv-tr...2018-02-06

HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAH!!!!!!!

#onetimers

betting on that one can cripple your arse in a heartbeat.......

you really have to be an idiot to view that investment as solid long term plan......

it's why I mentioned if I was younger, I'd have bought call options back in Nov......going broke back then was no biggie.....

that's not an option at 52.6 yrs old.....

He bet everything he had(and didnt have apparently) on the volatility never going up again ever. He deserves everything he gets.

absolutely........time for him him to hit the kiosk at the wally world employment center or simply jump out of the window......

what a fk'n idiot.....

it's scary how this 'bet' resembles another version of the CDO (sub prime lending for those that don't know.....it's what caused the housing collapse)......this 'bet' simply doesn't carry the weight the CDO did....it only fk's a handful when the muck the works....

I'd like to meet Burry one day and hammer some vino with him out in the boonies.....

I'm guessing you know his current investment strategy is water, eh?

The difference between the CDO and the XIV is that the XIV was very clear that it was a dumb bet. It even said in their prospectus that the long term value was zero.

Basically, CDOs for housingin 2005-08 people bet on housing prices never going down because they never had.

Inverse volatility ETNs were betting on Volatility never going up but there is a 100% chance that it would.