Cash Vix ETFs

[tradingjournals]

I started the thread on the eve of Friday's session. To illustrate let us look at VXX and ^VIX changes on Friday (few hours later after the thread started):

VXX: 45.39 +0.55 (1.23%)
^VIX: 13.70 +0.72 (5.55%)

Both are long implied volty. Notice the difference in returns: 1.23% vs. 5.55%. Do you see the effect of the winds in your face due to the current presence of carry in VXX? Notice how many people did not even comprehend my question. Some even considered VXX/VIX as if it were the same thing. When I write plot VXX/VIX, I mean what I wrote: the ratio VXX/VIX.

The person who knows the difference could have earned 5.55 vs. the person who does not, choose blindly and earn only 1.23%, even if both persons were right on long the implied volty.

If one pulls a chart, one would notice that smart money hit in less than 5 minutes in Friday's session. There are people who know what they are doing. The majority of them are likely not here at ET.

The smart money chooses the right direction, in the right vehicle, at the right time.

 

[cdcaveman]

Quote from tradingjournals:

I started the thread on the eve of Friday's session. To illustrate let us look at VXX and ^VIX changes on Friday (few hours later after the post):

VXX: 45.39 +0.55 (1.23%)
^VIX: 13.70 +0.72 (5.55%)

Both are long implied volty. Notice the difference in returns: 1.23% vs. 5.55%. Do you see the effect of the winds in your face due to the carry in VXX? Notice how many people did not even comprehend my question. Some even considered VXX/VIX as if it were the same thing. When I write plot VXX/VIX, I mean what I wrote: the ratio VXX/VIX.

The person who know the difference can be earning 5.55 vs. the person who does not and earn only 1.23%, even if both were right on long the volty in their heads.

If one pulls a chart, one would notice that smart money hit in less than 5 minutes in friday's session. There are people who know what they are doing. The majority are not here at ET.

This is a pure example where you could be hit on the head with a trading edge and you wouldn't get it... You have gotten more leads into the core of the relationships between the futures, etf products , and you think people aren't getting what your saying...

"The majority are not here at ET. " You are so off its sick.. and it shows you where you are into your trading.. Ignorant..

 

[tradingjournals]

Only a less wise would argue with numbers and facts. The thread got the direction, the vehicle and the time right, but that is not the point of the thread. Logic is not by chance because the price showed that the theory is correct, particularly since the theory/logic were given before the price spoke. So price did what the price should have done. Price is like a teacher who grades exams: highest score to the person who got the highest right answers. But unlike the teacher, price gives negative marks.

 

[tradingjournals]

So the teachers were actually nice people, because they do not give negative marks. Real life in a classroom, in a workplace, in a forum, is generally very kind to people who are wrong, despite what they may think about themselves.

Price however gives negative marks to the wrongs, and rewards the rights. So those wrong people are purged out of the system, and the rights are added to the system.

In real world people essentially play politics, use insults/games and all sort of things to get something when in fair world they should actually be paying something. The world offers a lot of free puts.

 

[cdcaveman]

I"m not calling you names.. and if it came off that way i'm sorry.. Your just being ignorant..

 

[drownpruf]

Quote from NKVI>NH:

thats some seriously free edge dude. i doubt the guy or any of these guys can margin even 1 spread or understand the concept u just framed. jeeze.

Yeah, selling Feb and buying Jan anywhere from Dec 18-20th is a really difficult concept to follow. I am curious as what vol-line relates to "vol is high."

 

[tradingjournals]

Quote from drownpruf:

Yeah, selling Feb and buying Jan anywhere from Dec 18-20th is a really difficult concept to follow.

Why do you find it difficult?

 

[drownpruf]

Quote from tradingjournals:

Why do you find it difficult?

Sarcasm is obviously not your forte.

 

[tradingjournals]

Quote from drownpruf:

Sarcasm is obviously not your forte.

You have none. Sarcasm is just an after the fact false hedge against goofy things.

You may fool yourself, but not fool others.

I know that you know that I know that you know I am right.

 

[drownpruf]

Quote from tradingjournals:

You have none. Sarcasm is just an after the fact hedge against goofy things.

You may fool yourself, but not fool others who know.

I outlined the trade mechanics; so please let us all know where I am mistaken.