VXX a good buy at current levels?

Quote from kapw7:

It's still there and also more intense in the euro-VSTOXX futures.
Is it because of Christmas or is it model dependent? (or something else)
Would you think it's enough to trade it, if hypothetically you only rely on the spread for a trading signal
More...

I think that enough people began capturing...
The short-term roll yield or contango...
By shorting VXX or futures directly...
While paying the medium term roll yield or contango...
By buying and pairing VXZ or futures directly...
And this arbitrage has permanently narrowed the gap.
Making the term structure pretty much linear now.

It's been a great trade for about 2 years...
It couldn't last forever... hope I'm wrong.

Maybe there is always a Vol niche where this can be exploited...
This is not my specialty... just a sideline that I'm ramping up.
 
Quote from atticus:

Sell VXX to 6 and buy eurodollars to 103!
More...

Usually I can interpret your cryptic messages into "if you can understand this, I know what you know and I also know to keep my mouth tight shut" but for this one I have no idea! :p

Or I am just stupid for trying to read things into some of your posts...
 
Quote from spencer:

Usually I can interpret your cryptic messages into "if you can understand this, I know what you know and I also know to keep my mouth tight shut" but for this one I have no idea! :p

Or I am just stupid for trying to read things into some of your posts...
More...

Eurodollar yields are derived from their discount from 100. GEs at 100 implies a zero yield.
 
VXX is worth buying for several days each year. Now is not the time. I think we could see VIX under 11 after the debt ceiling vote on Wednesday. Don't try to predict VIX reversals; wait until they happen and then ride them up.
 
VXX at historical low and S&P 500 at 5-year high. Even price is good it could be too early to buy VXX especially while S&P 500 is bullish. Agree with previous post - wait for reversal and then take ride
 
VXX.. this one. has been beaten to death here...
I had a question to see if any one can take a guess..
for VXX to spike back to 65. in the next 2 months..how much should SPY have to fall.
 
darwin666 said:
VXX.. this one. has been beaten to death here...
I had a question to see if any one can take a guess..
for VXX to spike back to 65. in the next 2 months..how much should SPY have to fall.
More...

A sufficiently quick 20% down move in SPY should easily return 100%+ in VXX.
 
Not_EliteTarder said:
A sufficiently quick 20% down move in SPY should easily return 100%+ in VXX.
More...


20%.... SPY.. on the down side. is barely moving 1-2 percent and then shooting up...
i wud say.. that max. this summer .we may see 5% or 10...

how much wud SPY move?
 
darwin666 said:
20%.... SPY.. on the down side. is barely moving 1-2 percent and then shooting up...
i wud say.. that max. this summer .we may see 5% or 10...

how much wud SPY move?
More...


Huh? 20% down move on SPY... 155 from here. What is 1-2% referring to?

We are guessing how much / how fast would SPY have to move to see a 100% increase in VXX.. not guessing how much SPY WILL move.
 
You must log in or register to reply here.
Back
Top