I know the VXX is not the VIX, and is not supposed to track it,
and it has lots of continual deterioration from rolling futures
contracts with daily loss of time value in those contracts.
Last year, for a trade and "insurance purposes" it seemed you
could play the VIX (at many rock bottoms) through the VXX (iPath
S&P VIX Short Term Futures ETN).
Lately, the last 3 times the the VIX hit 11, it was up 15%
within a few days. But the VXX does not actually track well or
exactly, and barely has gotten 4-5-6% off those bottom. The
VXX looks like a continual freefall.
Does anybody see a way (or best way) to play the upside VIX when
it hits 11?
I could understand if you don't want to play VIX futures, but
why don't you simply trade VIX options, those will move with the
$VIX, vs these VIX ETN's that are not as correlated. I'd buy
deep in the money options for a low delta that moves more lock step
with the VIX
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VIX and VXX - how?
Posted by Walt on 23rd of Jan 2017 at 08:41 pm
I know the VXX is not the VIX, and is not supposed to track it, and it has lots of continual deterioration from rolling futures contracts with daily loss of time value in those contracts.
Last year, for a trade and "insurance purposes" it seemed you could play the VIX (at many rock bottoms) through the VXX (iPath S&P VIX Short Term Futures ETN).
Lately, the last 3 times the the VIX hit 11, it was up 15% within a few days. But the VXX does not actually track well or exactly, and barely has gotten 4-5-6% off those bottom. The VXX looks like a continual freefall.
Does anybody see a way (or best way) to play the upside VIX when it hits 11?
Walt: You could simply buy
Posted by steve on 24th of Jan 2017 at 08:03 am
Walt: You could simply buy calls on the VIX.
Further, go read the exact description of the VXX or UVXY so that you fully understand how it differs from the VIX.
yeah I'm not sure walt,
Posted by matt on 23rd of Jan 2017 at 09:03 pm
yeah I'm not sure walt, I don't trade VXX myself.
I could understand if you don't want to play VIX futures, but why don't you simply trade VIX options, those will move with the $VIX, vs these VIX ETN's that are not as correlated. I'd buy deep in the money options for a low delta that moves more lock step with the VIX