VXX a good buy at current levels?

[LCFXTRADER]

Does the VXX % gain or loss calculate from the close of the previous day or from the open of the current day to the close?

6/29

$15.21
-1.05 (-6.46%)

 

[Nubee]

Quote from LCFXTRADER:

Does the VXX % gain or loss calculate from the close of the previous day or from the open of the current day to the close?

6/29

$15.21
-1.05 (-6.46%)

 

[loufah]

The change in VXX that you'll see quoted is relative to its 4pm close the previous day. The change in VIX futures that you'll see quoted is relative to the 4:15pm close the previous day. There is typically movement of 1% or more, usually downward, in trading from 4pm-4:15pm, so VXX will often appear to underperform the futures.

 

[DeeDeeTwo]

Quote from loufah:

The change in VXX that you'll see quoted is relative to its 4pm close the previous day. The change in VIX futures that you'll see quoted is relative to the 4:15pm close the previous day. There is typically movement of 1% or more, usually downward, in trading from 4pm-4:15pm, so VXX will often appear to underperform the futures.

The "1% movement"...
Is this when ETFs sell the front month and buy the next month?

And VXX trades until 20:00 daily...
So any VIX action would be reflected in real-time.

 

[joespo]

Why is volatility not increasing as much as it has in the past when there was a big (> -1%) down day?

 

[pistolpt]

Quote from joespo:

Why is volatility not increasing as much as it has in the past when there was a big (> -1%) down day?

traders on vacation. options not that expensive. no one expecting big move.

 

[Shanb]

Quote from joespo:

Why is volatility not increasing as much as it has in the past when there was a big (> -1%) down day?

This has been happening for a while now. Notice that vol has been getting sucked out of this market like a balloon ever since we tested and held that 1305 level in the Cash. It never had a huge bid on the selloff and when we held that level, the vix has held below 20.


The market is saying something here...They are expecting vol in equities to continue coming out and go to much lower levels. When the market says something, listen!

 

[Shanb]

Quote from pistolpt:

traders on vacation. options not that expensive. no one expecting big move.

Traders aren't on vacation next week...lol. The market prices what it expects, vol will be lower going forward. The market held in given how bad the data was.

 

[NoBias]

6/17 [Sunday Thread started]

Approaching reverse split territory

 

[pistolpt]

Quote from NoBias:

6/17 [Sunday Thread started]

Approaching reverse split territory

When something loses 96% of its value, and continues to do the same thing, what makes you think it will do any different?

Does anyone else feel vindicated?