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iPath S&P 500 VIX ST Futures ETN Message Board

  • do.john67 do.john67 Nov 12, 2011 1:40 PM Flag


    I can honestly say that shorting VXX has been the easiest money that I have ever made. I have never been more sure of making a profit than while shorting VXX. I almost fear trading VXX because the money earned has been so easy.
    I may soon exit the trade because anything this easy has to have a catch, and disaster must be somewhere around the corner.
    There is just no way that a vehicle for allowing just any Tom, Dick or Harry to make thousands of thousands of dollars simply shorting VXX can last forever.
    But, I will feast while the long turkeys keep pumpihg up the price with every little panic in the market for now!

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    • Do you know how many people have come along before you saying the exact same thing, only to lose it all in the blink of an eye?

      Well, the only saving grace is, people who invest as foolishly as you never have much money at all to risk anyway, so it's not like you're losing anything significant to begin with right. People who have real money, aren't this stupid.

      So go ahead and play Russian roulette with your 600 bucks, good luck

      • 1 Reply to brentgolf0903
      • You are sounding agitated that someone with less experience than yourself can trade you under the table. You must be long VXX and looking to take your frustrations out on others, because all that time you have spent learning how the market works, not doing you a bit of good, because you are too afraid to take any risks. Keep in mind, scared money never wins.
        I appreciate you sharing thoughts about options, greeks etc, but the whining and childish attacks are getting old.
        If you truly know something about the market and option trading, then you know that my account is significantly higher than the $600 that you mention, or I wouldn't be able to short calls in my account. Check around, see what the brokerage firms require. Stop exposing your own naivete!

    • If you think making money with this ETN is so easy, then you have yet to fully appreciate the risks associated with it. Considering how volatile it has been, I find it a little hard to fathom how you have so easily made money shorting it. Of course, you may just be another one of those stock message board posters who always makes money no matter what. I don't know.

      • 1 Reply to nolongerretiring
      • its the blind leading the blind. he doesn't realize the layers of risk that are built-into this product.
        1.) The Implied Volatility of the calls can skyrocket at any moment.
        2.) A 3 to 4 Standard Deviation event can happen at any time. That would easily rock VXX up 15-20% in one day such as last Wednesday.
        3.) 1987 event was a 20 STD. Deviation event, that can happen .00006% of the time.
        4.) Gamma can also rise and you won't be able to guard against its rise.

        Pros -
        1.) VIX typically is in contango affecting term structure of the VXX about 70-80% of the time.
        2.) Shorted calls expire 75-80% of the time.
        3.) VXX is basically insurance
        4.) Play the role of the house
        5.) A casino wins as the house, but sometimes someone hits the proverbial *jackpot* and the casino is forced to pay out, that is the allure of buying options. To hit the lottery jackpot. However, if you sell options, the gain in your options may get wiped out by one of the aforementioned events.

        So it may seem easy now but make sure you are properly hedged.

        Disclosure - I have a small amount of shorted december calls in the high 60s, but I also learned my lesson back in august-october. This is not *free money*

    • How many thousands have you taken out of this thing?

      Remember tinger and some others got completely wiped out when this went from 19.88 to 59.

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