| Author | Message | ||
     Conquas Side Hero Username: Conquas Post Number: 4069 Registered: 11-2011 Posted From: 99.82.251.78 Rating: N/A |
read this article.... this guy discussed about VXX in a layman's terms.... http://jack--wong.com/2012/02/14/vxx-option-is-not-normal-be -careful-out-there/ all opinions expressed here are mine.. | ||
| Conquas Side Hero Username: Conquas Post Number: 4068 Registered: 11-2011 Posted From: 99.82.251.78 Rating: N/A |
ippudu VXX paduthundhi ante..... people are bullish on the stock market in the coming months...... VXX concept anedhi koncham difficult to understand... I have posted about it in my previous posts... let me find them for you..... please read the folowing article.. http://seekingalpha.com/article/523651-contango-and-backward ation-s-relationship-to-vix-futures-convergence $VXX: The largest and most successful VIX product is the iPath S&P 500 VIX Short-Term Futures ETN (NYSE:VXX). This ETN holds a long position in first and second month VIX futures contracts that roll daily. Because there is an insurance premium in longer-dated contracts, the VXX experiences a negative roll yield (basically, that means long-term holders will see a penalty to returns). What's more, because volatility is a mean-reverting phenomenon, VXX often trades higher than it otherwise should during periods of low present volatility (pricing in an expectation of increased volatility) and lower during periods of high present volatility (pricing a return to lower volatility). all opinions expressed here are mine.. | ||
| 2009 Junior Artist Username: 2009 Post Number: 850 Registered: 07-2008 Posted From: 96.18.232.67 Rating: N/A |
CON, why VXX is diminishing in value and in 52 wk lows even though dow and S&P are no where near their 52 wks highs?/ do you know how VXX trades?? are there any better options to play volatality?? UVXY?? | ||
| Conquas Side Hero Username: Conquas Post Number: 4067 Registered: 11-2011 Posted From: 99.82.251.78 Rating: N/A |
I am going to talk about S&P only here  S&P 500 SPDR ETF (ARCA:SPY) is once again pushing at the $136.25 resistance level. A move above $136.25 could spark additional buying interest. The next upside target, if this occurs, is $139.75. This would bring the ETF near the 52-week high of $142.21, but it will be hard for the ETF to climb back above it. Over the longer-term the RSI was showing a bearish divergence, which indicates a trend reversal, and an unlikely rise back through the 52-week high. On the flip side though, the indicator has recovered aggressively and has shown a slight positive divergence at the recent lows. This confirms the current short-term move higher. Minor support is at $130.85, with a drop below likely to result in a test of the low at $127.14 (unadjusted). If that low is breached, the next downside target is at $126, followed by $122 (if we move below $126). all opinions expressed here are mine.. |
