Who Is Trading This ETF? (TVIX, TNA, TZA, AGQ, RENN, BVSN)
Bill Luby: As action in the VelocityShares Daily 2x VIX ST ETN (NYSEArca:TVIX) heats up again today (up 15% on 21 million shares traded), I gave some thought to who might be trading what I called in this space over a year ago “day trading rocket fuel.”
Fortunately, we have the optionsXpress Trading Patterns feature to help answer this question.
In the graphic below, it appears that TVIX is part of the arsenal of those who favor the high volatility products that are ideally suited to short-term trades. These include the 3x leveraged ETPs (NYSEArca:TNA) and (NYSEArca:TZA), the 2x leveraged ETP for silver (NYSEArca:AGQ) and a handful of futures products based on the S&P 500, Dow Jones Industrial Average and crude oil. Two high flying stocks are also on the list, Renren (NYSE:RENN) and BroadVision (NYSE:BVSN) – the latter of which just happens to be the first or second internet stock I ever purchased, some 16 years ago.
It turns out I cannot type fast enough to keep up with market events. As I was typing this, there appeared to be another short squeeze in TVIX (see VXX Options Calm After Second Highest Volume Day Ever for details on the last one), though the markets seem to be settling back down once again.
Finally, a quick reminder that today is the last trading day for VIX February options. VIX February futures can be traded through tomorrow’s pre-market session, which runs from 8:00 – 9:15 a.m. ET. Both products settle with a special opening quotation (VIX SOQ) at the beginning of tomorrow’s regular trading session.
Disclosure(s): short VXX and TVIX at time of writing; optionsXpress is an advertiser on VIX and More
Bill is a private investor who also authors the VIX and More (http://vixandmore.blogspot.com/) blog and an investment newsletter from just north of San Francisco. His research and trading interests focus on volatility, market sentiment, technical analysis, and ETFs. Prior to becoming a full-time investor, Bill was a business strategy consultant for two decades and advised clients across a broad range of industries on issues such as strategy formulation, strategy implementation, and metrics. When not trading or blogging, he can often be found running, hiking, and kayaking in Northern California. Bill has a BA from Stanford University and an MBA from Carnegie-Mellon University.