VIX 03 (Mar 14 - Dec 23)

Re: VIX 03 (Mar 14 - Dec 17)

Postby winston » Thu Apr 20, 2017 1:46 pm

The Worst Investments You Can Make: iPath S&P 500 VIX Short-Term Futures (VXX)

Expenses: 0.89%, or $89 per $10,000 invested.

Let’s take the iPath S&P 500 VIX Short-Term Futures TM ETN (NYSEARCA:VXX). VXX isn’t a stock. You aren’t buying ownership in anything. There’s no sales or net income to track, no price-to-earnings ratio and no dividends.

That’s because this is nothing more than a gamble on volatility. The VXX is tied to something called the Chicago Board Options Exchange’s Volatility Index. It’s nothing more than a “barometer of investor sentiment and market volatility.”

If that sounds like a wibbly-wobbly-timey-wimey thing that it difficult to peg down as far as its actual methodology, well, join the club.

But it gets worse. No security actually tracks this “barometer,” so instead, futures contracts based on this wibbly-wobbly-timey-wimey security were invented. The VIX futures themselves? Well, the VXX vehicle created to track them isn’t even very good — since it only moves about 50%-60% of what the VIX index moves.

The VXX is thus this bizarre security that trades like a stock, is only moderately tied to futures contracts but has the same decay qualities of an option.

And it’s down 73% over the past year. It’s not an investment. It’s putting all your money on the wheel of fortune.

Source: Investor Place
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Re: VIX 03 (Mar 14 - Dec 17)

Postby winston » Thu Apr 20, 2017 1:46 pm

The Worst Investments You Can Make: iPath S&P 500 VIX Short-Term Futures (VXX)

Expenses: 0.89%, or $89 per $10,000 invested.

Let’s take the iPath S&P 500 VIX Short-Term Futures TM ETN (NYSEARCA:VXX). VXX isn’t a stock. You aren’t buying ownership in anything. There’s no sales or net income to track, no price-to-earnings ratio and no dividends.

That’s because this is nothing more than a gamble on volatility. The VXX is tied to something called the Chicago Board Options Exchange’s Volatility Index. It’s nothing more than a “barometer of investor sentiment and market volatility.”

If that sounds like a wibbly-wobbly-timey-wimey thing that it difficult to peg down as far as its actual methodology, well, join the club.

But it gets worse. No security actually tracks this “barometer,” so instead, futures contracts based on this wibbly-wobbly-timey-wimey security were invented. The VIX futures themselves? Well, the VXX vehicle created to track them isn’t even very good — since it only moves about 50%-60% of what the VIX index moves.

The VXX is thus this bizarre security that trades like a stock, is only moderately tied to futures contracts but has the same decay qualities of an option.

And it’s down 73% over the past year. It’s not an investment. It’s putting all your money on the wheel of fortune.

Source: Investor Place
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Re: VIX 03 (Mar 14 - Dec 17)

Postby winston » Tue May 09, 2017 11:16 am

The Market “Insurance” Trade that Profits From a Crash

By Jay Soloff

VIX is a measure of implied volatility. For those who aren’t aware, implied volatility is a measure of future volatility expectations. It’s what the market thinks is going to happen.

So the market has been expecting average S&P 500 volatility (as measured by the VIX) to be around 10 recently and generally no higher than 13 for most of 2017 to date.


Source: Investors Alley


http://tradesoftheday.com/2017/05/08/th ... m-a-crash/
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Re: VIX 03 (Mar 14 - Dec 17)

Postby winston » Tue May 16, 2017 1:24 pm

Volatility won't cause a crash in US stocks

Source: Daily Crux

http://thecrux.com/sjuggerud-volatility ... -s-stocks/
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Re: VIX 03 (Mar 14 - Dec 17)

Postby winston » Sat Aug 12, 2017 7:20 am

Robert Shiller and Jeremy Siegel share why they think volatility is so low

by Nicole Sinclair

“Volatility tends to jump up when there’s some unusual news regarding the stock market and [there’s] a big drop in the market. and we haven’t seen it.”


“Never before has the financial system in the US been as well financed and banks as well protected as now. The amount of reserves [and] of safe capital, if you go back historically, is just enormous.

If we think financial instability is a source there, maybe safety of the banks is leading to less volatility.”


Source: Yahoo Finance

https://finance.yahoo.com/news/robert-s ... 33542.html
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Re: VIX 03 (Mar 14 - Dec 17)

Postby winston » Sat Aug 12, 2017 7:59 am

4 ETF Ways to Hedge Against Volatility

by Sanghamitra Saha

1. QuantShares U.S. Market Neutral Anti-Beta Fund BTAL
2. U.S. Market Neutral Momentum Fund MOM
3. First Trust Alternative Absolute Return Strategy ETF FAAR
4. 30 Year TIPS/TSY Spread ETF RINF


Source: Zacks

https://finance.yahoo.com/news/4-etf-wa ... 04034.html
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Re: VIX 03 (Mar 14 - Dec 17)

Postby winston » Sat Oct 21, 2017 4:40 pm

The New Crash Will Be the Same as the Old Crash… but Worse

By Shah Gilani

Volatility has become so subdued, as measured by the VIX, and almost every other measure of portfolio, market, or systemic volatility, that:
1. Risk parity funds are massively leveraged-up in equities.
2. Target volatility funds are loaded to the gills with assets with the lowest volatility profile, stocks.
3. Bets against the VIX rising are at record levels, meaning there are massive shorts on the VIX.
4. Hedge funds and speculators are selling both VIX call options and VIX call option spreads for “free income” because they don’t believe the VIX will rise much.

What if it does? What if a bout of fear hits the markets? What happens to volatility then?


Source: Wall Street Insights

https://wallstreetinsightsandindictment ... but-worse/
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Re: VIX 03 (Mar 14 - Dec 17)

Postby winston » Sat Dec 02, 2017 8:18 am

A mystery trader keeps betting that the stock market will go crazy

by Joe Ciolli

A trader just rolled over a massive volatility bet that could pay out $260 million if all goes according to plan.

The wager is on a large increase in the VIX, which serves as the stock market's fear gauge and has been sitting near record-low levels for months.

Source: Business Insider

https://finance.yahoo.com/news/mystery- ... 00695.html
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Re: VIX 03 (Mar 14 - Dec 17)

Postby winston » Thu Mar 15, 2018 9:16 am

Volatility is ready for an encore

by Jeff Clark

The VIX has moved back down towards its 50-day MA – which should now serve as support. In other words, the VIX should hold above the 16 level.

At the same time, all of the technical indicators have recycled back to neutral. So, there’s plenty of energy stored up in these indicators to fuel a move higher.

Of course, a higher VIX usually accompanies a lower stock market. So, all of this lines up with my argument that the S&P 500 will soon retest its 2581 closing low.

To me, it looks like the VIX could be headed higher – soon. Traders ought to prepare for it.

If you’ve profited off the market’s bounce over the past few weeks, then consider taking some gains off the table, or at least tightening stop losses on those positions. Aggressive traders should consider adding some short exposure.


Source: Jeff Clark’s Market Minute

http://thecrux.com/volatility-is-ready-for-an-encore/
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Re: VIX 03 (Mar 14 - Dec 19)

Postby winston » Tue Aug 21, 2018 11:28 pm

When You Should Pay Attention to Market Volatility

by Jason Hays

Here are some rules to consider when following the news:

1. If the S&P drops less than 15 points in one day (0.6%), you don’t need to care. This is normal.

2. The market has averaged a change of 0.6% change every day for the last 15 years. That’s 15 points daily for the S&P 500, including the Great Recession of 2008.

3. If the market moves as much as 1.2%, a statistician would consider it normal. That works out to be about 30 points for the S&P 500 or 300 points for the Dow, These changes might make for big headlines, but according to statistics, it’s completely normal.

4. If the S&P changes by 60 points in one day (2.2%, or about 500 points for the Dow) you may want to pay attention. A daily move of more than 2.2% indicates something abnormal has likely happened in the financial markets.

5. If a change that large, either up or down, occurs more than five or six times in a month it’s very likely the market will be down in the year ahead.


Source: Investopedia

https://www.investopedia.com/advisor-ne ... yptr=yahoo
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