Archegos, a TVIX Joke?

#Volatililty

Good Morning,

It looks to me like there is a trade on with UVXY and TVIX. Please note I have a small position in UVXY. I am not offering investment advice, nor do have have the moxy to relearn something that I once understood at 1 AM prior to what should be a productive work day. (It is bothering me I can't remember how their construction results in atrophy on their rebalancing dates.)

My question to those of you who follow these positions is, is this a trade, a rebalancing of UVXY, or both?

As someone who lost the entire principal of a brokerage account betting the wrong way on leveraged volatility indexes during the European Debt Crisis 2012/2013, I am the wrong person to ask regarding this.

I would however, recommend anyone looking to hedge with these ETNs that they take a careful look at their structure and rebalancing dates. I can personally attest, that while they offer the potential of high returns during times of volatility, their downside risks can also be quite extensive.

Please send me an email if you have the answer to my question, I am genuinely interested in the divergence of these two securities during Friday’s trading session.

Warmest Regards.