HomeNews News Comment by Burrben By Single Comment April 16, 2014 0 6 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 Connected157,285FansLike396,312FollowersFollow2,290SubscribersSubscribe Latest Articles Hot Items PSW’s Wednesday Webinar: Fed Meeting and Powell’s Press Conference ~ 5/1/24 Markets The TikTok Ban Is (Almost) Here…One Year Later Markets Flip Floppin’ Thursday Markets Ask Peter: Will the Russians Create a Great Northern Sea Route? Markets How a post falsely claiming migrants are registering to vote spread to millions in four weeks 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.