Very quiet weeks, like last week, usually result in a slight shift lower in the VXST – VIX – VXV – VXMT curve.
Contango persists and it worked its magic on SVXY, VXX, and UVXY last week. SVXY had a good week rising over 5% while VXX gave up just about the same amount and UVXY lost over 11%. Note VVIX is remaining at relatively high levels as is SKEW.
For the year SVXY is up about 7%, VXX has lost 21% and UVXY is down 45% (after being up over 100% back in February).
SVXY finished the week at 54.14. Shortly after the market open on Friday, with SVXY around 53.30 there was a buyer of SVXY Apr 29th 58 Calls at 0.20. This turned out to be on the right track as SVXY rose and these calls finished the week bid at 0.30. There’s still a week of trading to go, but so far so good.