Okay. The reason VIX went up 5% and VXX, half as much today, is supply/demand. There's a lot of pent up supply of VXX--people who've been waiting weeks to sell. Many of them reading this board. So when it went up to $18.35 today, men and machines went into action to sell this puppy back down to $17.50
Now as for tomorrow, I think another 5% up on the VIXX will translate into VXX at $19.50 -- for five minutes, until the sell orders kick in. So if you get a chance to sell, sell. Disclosure: I bought 100 $18 and 100 $19 VXX calls today, thinking I can sell them for 5 times as much tomorrow morning, about an hour after the session opens. Don't hold too long, people, if the gods get you a chance to get out of VXX with a profit. We go way up Monday. No one wants to hold over the weekend, due to the jobs report. The general direction of this market remains up.
LOL Exactly the OPPOSITE. Contango is as low as it has been in weeks, and today narrowed it more. Unlikely we are heading for backwardation, so expect VXX to mirror VIX moves more closely going forward on a percentage basis. Who knows what the market will do for sure, but VXX looks like a buy right here. With so many shorting it, it is also possible that it will trade at a premium to value as the squeeze is on........... I think it is up 10% tomorrow and this time ramps into the close.
Oh boy! I am going to save someone here. If you bought it today you have lost and it was up 7-8%.
What makes you think if the VIX rises 10% you will make anything. It just DID!!
I wish I could find all you fellas and have you just do direct deposit to me. But I am thankful for those who do not read the prospectuses.
I got burned only once not reading the prospectus on FAS years ago. I vowed that to never happen again.
All time lows mean nothing. I simply means that news lows bring more lows...nothing else. You picking the bottom on VXX is like picking the bottom on FSLR or Sprint or Research in Motion.
I'm sorry I shouldn't get so involved. I do not trade to survive, I have the luxury of doing it for fun but I know for certain 90% of people here are trying to get ahead. Buying VXX is not a way to do that. I'm just trying to help.
This product will 100% cross its all time low sooner than it will go to 20!