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A four (going on 5) day wipe out in the VIX (VXX -2.1%) erases nearly the entirety of its...

A four (going on 5) day wipe out in the VIX (VXX -2.1%) erases nearly the entirety of its 10-week advance, as the lack of disaster this weekend in Greece is enough - for now - to allow markets to move on. Also hurting VXX returns is a volatility market in contango, forcing losses on holders as futures contracts get rolled every 3 months.
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Comments (7)
  • glssmrbl
    , contributor
    Comments (556) | Send Message
     
    Time to move on from this trade. Until market pessimism returns and Greece becomes a punching bag for U.S. commentators I'm staying on the sidelines with this one.
    19 Jun 2012, 11:12 AM Reply Like
  • coachbill
    , contributor
    Comments (4) | Send Message
     
    $17 a decent entry point??? $19 worked for me last month!
    19 Jun 2012, 11:28 AM Reply Like
  • barrry
    , contributor
    Comments (36) | Send Message
     
    VXX is like going to Vegas! However, if you have the stomach the gains can be rewarding!
    Suggest we will get only a mini-twist at best, thanks to Greece. VXX back to over $20 by end of July!
    Happy trading!!
    19 Jun 2012, 12:08 PM Reply Like
  • glssmrbl
    , contributor
    Comments (556) | Send Message
     
    I doubt this rally can sustain if VXX goes back to 20
    19 Jun 2012, 12:34 PM Reply Like
  • Third Eye Market Analyst
    , contributor
    Comments (119) | Send Message
     
    Trading VXX is more like playing Texas Hold'em. If one could calculate the probabilities of winning and pot size, one could make calculated bets.
    19 Jun 2012, 01:15 PM Reply Like
  • Third Eye Market Analyst
    , contributor
    Comments (119) | Send Message
     
    According to my Fair Volatility Estimate model, VIX is currently undervalued (VIX 17.78 vs FVE 19.5). However, the trend of FVE is down. Also, if steep contango in VIX futures persists, that would put considerable downward pressure on VXX price. Perhaps the best strategy at this moment is to sit out and wait for better risk/reward trade situations.
    19 Jun 2012, 12:48 PM Reply Like
  • usamoneyyoda
    , contributor
    Comments (21) | Send Message
     
    Too cheap to not take a small option position in $VXX. I'm long Sept calls in/near the money. The euphoria of the Greek vote and Fed mtg will evaporate by EOM/early July.
    19 Jun 2012, 05:32 PM Reply Like
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