500 points is only about 3.5%. That would take VXX to maybe 25. "
Wrong ... 3.5% would be largest fall in over a year in a single day, and would send the HV to 20.
a VIX jump would be 30% easily, to 16 at minimum, 20 more likely. Like Feb 2007. that would send VXX to $32.
If you dont have the stomach for that, dont be short VXX. it will happen, not tomorow and not most days - but it will happen again... that's what risk is about. VIX was above 20 in every year since 2006.
based on what, the jolly green giant coming down his beanstock and pumbeling the Dow.....
The fact is that Ben will just print more and more money. The Dow will be 20,000 soon due to inflation and the decling of the U.S dollar. VXX short is a goldmine here.