Hi everyone,
my question is related to SVXY – I’m well aware of its mechanics, but I was looking at specific scenario…
Let’s suppose we see something of a -80% or -85% drawdown in SVXY in the future (simulated 2008 had a -90% DD).
1) Are there any risks in establishing a long stock position?
2) Is there a more “efficient” way to fade VIX spike/Elevated VIX?
Even with long stock – timing is everything (-80% DD vs -90%DD translates into 5x vs 10x difference in return, if rebounds back…