"VXX is an exchange-traded note ("ETN") based on The S&P 500 VIX Short-Term Futures™ Index, which is designed to provide access to equity market volatility through CBOE Volatility Index® ("VIX®") futures. Specifically, the S&P 500 VIX Short-Term Futures™ Index offers exposure to a daily rolling long position in the first and second month of VIX futures contracts and reflects the implied volatility of the S&P 500® Index one month later. The index futures roll continuously throughout each month from the first month of the VIX futures contract into the second month of the contract."
Then,, noob, don't buy this toxic lottery ticket unless you do...
If you want to bet against the market consider buying a bear or leveraged bear ETP or shorting a bull or leveraged bull ETP. But don't fight a futures market locked in contango.
Then stick with mutual funds, imo.
PS: If you've got insomnia tonite, read the prospectus! It'll help you sleep...
Yes,clay, and because of the prevailing attitude of investors, puts are cheaper and lowers VXX; the expectation is no more than 1 or 2 down days, never closing more than 100 dow points red. No one knows when the big drops come, and it gets expensive positioned to wait....