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iPath S&P 500 VIX ST Futures ETN Message Board

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  • dcorielle74 Aug 13, 2012 1:07 PM Flag

    I,m Long this P.O.S Question Tho

    This P.O.S. goes down no matter what the market does. I give up on this junk. Apparently, there's no volatility now or in the future.

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    • Guys, VXX is not a stock, it's basically a daily stastical calculation. The rules of Technical analysis does not apply and it's long term expected value is $0 (thus the seemingly permanent downslope). That said, it's actually performing exactly like it's suppose to, it's used to hedge against sharp declines in long position of actual stocks of companies in a portfolio. It's based on Volatility Futures which are in steep contango (i.e. more downside for VXX in coming weeks)

      To give you an idea how complex this is, 1) you have stocks 2) you have an index of stocks like s&p 500 3) you have options on this index 4) based on the options there's implied volatility calcuations 5) then you have futures on volatility 6) then you finally have VXX which is based on these volatility futures.

    • good assessment meanwhile the short for vxx is XIV which set a new high today. yet i see it at resistance as well as SPY SPX so now is not the time to buy.

      for shorting the market i prefer SDS EDZ as they respond directly in lock step to S&P

      • 1 Reply to itsallgood4u99
      • True, but... Don't lose sight of the fact that these things can (and will) change)... Memories are short here. Look back at July through September 2011. The XIV was cut IN HALF. The VXX MORE THAN DOUBLED. Election year aside... it could happen again. The VXX will close above 15 before it closes below 10 (not including the possible upcoming reverse split). WAY to many people have jumped on the "short the VIX" bandwagon. Watch for a rapid reversal... at anytime, blowing contango to bits. I like my odds here going long (3 month time horizon)...

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