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iPath S&P 500 VIX ST Futures ETN Message Board

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  • happy2daz happy2daz Mar 29, 2012 9:59 AM Flag

    Enjoy VXX Today

    vxx was up 1.4% yesterday at the close, was up 10% at the high. what are you talking about ?

    and it's up 5% now.

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    • I understand Spot VIX and VXX are not one in the same of course but it is supposed to closely match the underlying idea that it is tied to no? 5% off in half a day is incredible.

      This thing is ONLY a short. 5% of the time throughout the year you will get backwardation. Rather assume you are in the 95 percentile and part of the contango and short this pig?

      • 1 Reply to wes_w_weber
      • Vxx is the short term futures of VIX. VIX is just an index. so if the fear is in April. then VXX will spike, regardless what VIX is doing today. but if VIX doesn't spike by mid april. the VXX will crash and then roll over to MAY or June. so do you think traders are have fear in april, if the answer is yes, then load up on VXX now. but if the market goes flat and no fear in April, then the contango will eat up the value like an option time decay. thats all.

    • I meant the spot VIX is about even where it was yesterday (up 10%) and at that point VXX was 18.84. Now VXX is 18.00.

      That's almost a 5% decay rate since yesterdays top! That is sick!

      I am going to spend the rest of my life trying to get a product issued that decays 5% in half a day with out anyone being the wiser.

14.11-0.27(-1.88%)May 25 4:00 PMEDT