What snap? VXX held up quite well today, considering the S&P went up 17 points. One month ago VXX would have plunged 10% on a day like today. VXX-IV closed at 18.23 today.
Absolutely incredible that on April 15, VXX was at 18.30 and the S&P was at 1550. Now the S&P is at 1667 and VXX is at 18.23. WOW, it just keeps staying above 18.
A couple months ago VXX was capable of going up 4 bucks in a day. It would have gone up at least 5% on a day like today. Now it can't even manage 1%.
Are you long VXX? It has to be incredibly frustrating for both shorts and longs.
VXX hasn't really dropped at all while the market has set all time highs.
But it doesn't go up either! YEsterday the S&P dropped 10 points and VXX actually went down. Right now the S&P has dropped 10 points as I'm typing and VXX is only up a measly 20 cents.
I thought that since they have to sell the cheaper May future to buy the more expensive June future, they can buy fewer June contracts, which makes VXX decline in value. Is my understanding incorrect?
I'm talking about the drop due to the daily rollover from 1st to 2nd month futures. VXX should be dropping just from the daily rollover today.
VIX futures are down a small amount, and VXX is only down a few cents. The 10% contango should have VXX down a lot more today, but it's not. Contango seems to be not working for the last couple weeks.
I was stunned myself. Really makes no sense.
I'm thinking we have entered the blowoff top phase that slcerick talked about. The market is going higher and VXX is staying flat.
I am closing my short here. All the earnings and big economic reports are out of the way, so don't know why VIX isn't dropping.
Even if VIX doesn't drop, VXX should still drop from contango, so don't know why VXX isn't dropping.
Contango happens everyday, or the drop due to roll yield, whatever its called. This thing always used to suffer from those afternoon plunges even in a flat market, but it hasn't recently.
Even if people are buying puts since the market is so high, which keeps the VIX elevated, I am puzzled by how VXX isn't dropping. We still have 8-9% contango right now. That should make VXX drop, even if the VIX keeps hovering around 13.
I don't know why VXX is up today - what is this, the 3rd straight up day for VXX? How is that possible with contango?
People keep saying VXX is being held up by people buying protection. So if the market keeps going up, then more people will buy protection, and VXX won't go down. But then if the market drops, VXX will go up. So I guess that means VXX won't go under 18 any time soon?