Yesterday, the ProShares Ultra VIX Short-Term Futures ETF (BATS:UVXY) underwent a reverse split…
One that could have a real positive effect on some upcoming trades.
The UVXY is an exchange-traded fund (ETF) that tracks short-term volatility with 1.5X leverage.
Now, the UVXY doesn’t track the VIX directly – it tracks VIX futures instead, which aren’t as volatile. Take the iPath Series B S&P 500 VIX Short-Term Futures ETN (BATS:VXX), for example. This ETN, unlike the UVXY, isn’t leveraged.
As a result, it only moves about 45% as much as the VIX.
Now, as a Profit Takeover member, you know that we need volatility to profit. When you’re trading options, volatility is key.
That’s why we take interest in the UVXY – and the 1:10 reverse stock split it underwent yesterday.
Essentially, this split will increase the price per share of UVXY while decreasing the number of shares outstanding. With a 1:10 reverse split, that means for every 10 pre-split shares, you’ll get one post-split share – but that single share will be worth 10X more.
So, the value of your shares stays the same – but the number of shares changes.
As of Tuesday’s close, UVXY was worth about $4 per share – and it was losing about 2% per day. Two percent of $4.00 is just eight cents – not too significant.
At Wednesday’s open, UVXY was worth $40. Two percent of $40? EIGHTY cents.
That’s a lot more movement – and a lot more opportunity.
The moves on UVXY are going to explode. Trading will increase, and this ETF will start moving lower faster.
Fast moves equal fast money, no matter which direction it’s in – if you play it right.
And today, at 2:00 p.m. ET, I’m going live to tell you exactly how to do just that.
Catch my latest livestream right here. I’ll walk you through this reverse split, and show you exactly how to turn it into fast, consistent, asymmetrical returns.
Click here to register, and I’ll see you then,
May 27 2021