Trading the VXX’s Dislocation With VIX
Due to a “clerical issue,” Barclays was forced to stop selling new shares in the iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) on March 14, and that situation remains unresolved.
Trading the VXX’s Dislocation With VIX
Trading a Breakdown in the VXX
Uncertainty in the VXX has risen significantly after the issuer in charge of the volatility ETN, Barclays, announced it was suspending new share sales.
So You Want Short the Market—Here’s How
The bulls have been in charge since March of 2020, but if sentiment changes, it’s important to know how to short the market—as a standalone position or a hedge.
Trading the Recent Spike in Market Volatility
A sharp spike in market volatility during the fall of 2021 has put the sector in focus, with renewed attention on products like VIX, VXX, VVIX, UVXY and SVXY.
Perfect 2020 Hindsight: The Halftime Report
In 2020, one of the biggest winners has been the history books. Historians will look back at 2020 as the year the United States struggled with a pandemic, civil unrest, economic recession and the growing influence of technology on everyday life. Abnormality has also engulfed the global financial markets—arguably the most volatile period in market … Continued
Trading VXN, the Nasdaq’s Version of VIX
Investors and traders use the VIX, a well-known gauge of market volatility, to track “fear” in the marketplace. An increase in the VIX signifies that near-term options prices in the S&P 500 are rising, which can be an indication that “insurance” on the stock market is getting more expensive. Earlier this year, the VIX spiked … Continued
VVIX: Measuring the Volatility of VIX
When the VIX starts ripping, many traders expand their watchlists to include additional volatility products such as VXX, SVXY and UVXY—as outlined recently by luckbox. Another parameter that tends to draw extra attention during sharp corrections is VVIX. This metric is effectively the “VIX of VIX” as it reports on implied volatility in the VIX, … Continued
How Volatility Products Behave
One of the big winners from last week was the volatility space, which received an outsized amount of attention due to the rout in global stock market indices. The VIX, or CBOE Volatility Index, had recently been pushed out of the investor consciousness as it dragged along the seafloor of the volatility landscape, languishing in … Continued
The Changing Tickers of Volatility
The late, lamented VXX—a volatility product that provided exposure to changes in the Cboe VIX Index through near-term VIX futures contracts—was one of the most actively traded exchange-traded notes (ETNs). Investors who thought market volatility might go up or down could buy or short shares of VXX—VXX RIP. It was supposed to be simple. But … Continued