VXX Buying Questions from NuBie, Experts advice please
With S&P near record high and VXX near record low. I am tempted to buy some VXX for Insurance, but I have never traded VXX before, and need some cool headed experts on some advice.
1. Is VXX stock like for options like, can I buy and hold forever until for example it went up and then sell it.
2. VXX has come down from 400 in 2009 to 20 in 2013, however, I can argue that if I buy VXX today with limited downside (go to zero maybe), but have a shot to 400 historic volatility with 20X return potential. Is this true and any validity in this logic.
many thanks in advance.
Charles
Sentiment: Buy