Why short VXX when we have XIV? I normally have a stop on VXX, when it kicks in a buy XIV. What are the advantages of shorting VXX and where am i missing the mark?
Advantage of buying XIV = There is a limited amount of risk. It can only go to zero. However you also have beta slippage. With shorting VXX you have no beta slippage but your risk is potentially unlimited
Best not to short VXX for the reasons you stated. Most people buy puts on VXX instead.