I ran into the same issue trying to hedge with VXX in the
past. I found that VXX is not just like VIX. VXX is
based on the volatility futures 1 month and 2 months out. So
if the market thinks that 1 to 2 months out the volatility will not
be that big, VXX does not move that much. In fact I had
noticed that in some cases VIX goes up while VXX goes down.
So, if your looking for a short term hedge, I wouldn't use
VXX if you are looking for longer term bear market hedge, then
maybe VXX would work out.
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I ran into the same
Why is VXX not responding upward pre-market?
Posted by pjtiii on 23rd of Feb 2021 at 09:11 am
I ran into the same issue trying to hedge with VXX in the past. I found that VXX is not just like VIX. VXX is based on the volatility futures 1 month and 2 months out. So if the market thinks that 1 to 2 months out the volatility will not be that big, VXX does not move that much. In fact I had noticed that in some cases VIX goes up while VXX goes down. So, if your looking for a short term hedge, I wouldn't use VXX if you are looking for longer term bear market hedge, then maybe VXX would work out.