When looking at the Volatility index you have to ask yourself, are we in a constant state of appreciation. I refuse to be another one to call the top, but when looking at the VXX as a trade, I see a 56.08% profitability. I went for owning the index outright instead of the options, as a major hedge for my current positions. Stocks have recovered from their sharp pullback that ended in mid-October as investors focused on broadly positive U.S. economic data and earnings, with the Dow and S&P pushing to a series of record highs. For the year, the Dow is up 6.25% and the S&P has gained 10%, through Wednesday's close. European stocks gave up earlier gains, with the Stoxx Europe 600 down 0.2%. German data showed that consumer price inflation stabilized at a low level in October. The yield on the 10-year Treasury note inched down to 2.357% from 2.359% on Wednesday. Yields rise as prices fall. Moral of the story...it maybe quiet ... a little too quiet. I do not see an immediate volatility spike occurring, but I love this current entry position to able to catch major volatility.
Disclosure: The author is long VXX.
Additional disclosure: I never write about an idea without skin in the game.