I’m waiting for someone to comment on this talking about a “gamma squeeze” without knowing what an authorized participant is 
https://twitter.com/iv_technicals/status/1360359579876528128 …
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Hey man, I’m afraid you’re wrong on this. When there is strong demand for UVXY shares they start to trade slightly above NAV. That incentives APs to buy VIX futures in the market and deliver them to the ETN sponsor in exchange for shares of UVXY which they can then
sell for a profit (at the higher-than-NAV price). The AP activity (buying VIX futs, selling UVXY) pushes up the prices of VIX futures and pushes down the price of UVXY but because UVXY started off at a premium, the net effect is that the prices of both VIX futures and
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UVXY are higher than they were before the process started. Demand for ETN shares pushes up the price of the constituents in exactly the same way that demand for ETF shares pushes up the price of the constituents (or demand for stocks increases stock prices etc)
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Very interesting, any opinion on this comment? Tho a bunch of bids to UVXY could change things, it may not be a very efficient way to do sohttps://twitter.com/MinvstrD/status/1360477273959333890?s=20 …
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