HomeNews News Comment by Burrben By Single Comment April 16, 2014 0 5 FacebookTwitterPinterestWhatsApp psw-placeholder View Single Comment BurrbenNovember 25th, 2013 at 2:07 pm Hmm, basically VXX decays due to the way the VIX is priced off the futures. Here's a little explanation: http://blogs.cfainstitute.org/insideinvesting/2013/10/08/the-worst-investment-in-the-world/ and http://deraldmuniz.com/2013/08/26/vxx-decay-trade-look-performance It's a really bad long term investment due to it's structure. But it can spike really hard on a spike lower with vol shock. So being in a limited loss/unlimted profit trade is better than selling preiumum on this one. Share FacebookTwitterPinterestWhatsApp Stay Connected157,353FansLike396,312FollowersFollow2,290SubscribersSubscribe Latest Articles Markets TGIF – Middle East Madness Continues Markets Stock Market Today: Stocks lower as Israel strike on Iran rattles markets Markets The Big Burnout: Life on the Front Lines of America’s Wildfires Markets Here’s what’s in the House foreign aid bills Markets Israel strikes Iran, according to multiple reports Load more
November 25th, 2013 at 2:07 pm
Hmm, basically VXX decays due to the way the VIX is priced off the futures. Here's a little explanation:
http://blogs.cfainstitute.org/insideinvesting/2013/10/08/the-worst-investment-in-the-world/
and
http://deraldmuniz.com/2013/08/26/vxx-decay-trade-look-performance
It's a really bad long term investment due to it's structure. But it can spike really hard on a spike lower with vol shock. So being in a limited loss/unlimted profit trade is better than selling preiumum on this one.