VIX is close to being undervalued: Cheap way to play it

[nitro]

(TVIX) VelocityShares Daily 2x VIX Short-Term ETN

But, understand this first:

Understanding Volatility ETFs Isn't As Easy As Watching The VIX

"I wrote about the inflows into (TVIX) VelocityShares Daily 2x VIX Short-Term ETN thisweekend. The inflows into $900 million (UVXY) ProShares Ultra VIX Short-Term Futures ETF have been even greater than that in the past month.

With such large inflows, it is worth examining these ETN’s and ETF’s more closely.

Here is what happened yesterday, March 28th (all pricing and data sourced via Bloomberg)..."

http://www.forbes.com/sites/petertc...mpaign=yahootix&partner=yahootix#6715a1993270

 

[noddyboy]

I am long options. Is that the better way to play it?

 

[eden]

How do you undervalue volatility? What is the base figure

 

[El OchoCinco]

Your title is misleading. You are not saying VIX is undervalued you are asking if the ETFs are undervalued.

 

[eden]

Your title is misleading. You are not saying VIX is undervalued you are asking if the ETFs are undervalued.

yes

 

[Handle123]

Today I had signal to do Longs, I prefer to trade VIX Short-Term Futures ETN Ipath (VXX) options and do mixture of Sept Put credit spreads and April 15 Debit Call spreads.

 

[SunTrader]

Nothing ... is under or overvalued.

 

[recession2016]

Nothing ... is under or overvalued.

that's an ignorant statement

 

[SunTrader]

that's an ignorant statement

Got that backwards.

If something was undervalued why did it not immediately get bought and move to "fair value" {another bogus concept}. Some genius hasn't figured it out yet I suppose?

Price only moves when someone perceives value (a subjective concept) is higher or lower. Otherwise price is already at fair value/overvalued/undervalued/whatever.

 

[Spectre2007]

Get long TVIX and UVXY.... Shits about to blow.