VXX

Made_In_Gyner

lol VXX is red

arounblacksneverelax

VXX at 40 kinda hot

InevitableAd2436

Bought VXX puts. Nothing ever happens

Every_Recover_1766

Super pissed off I can’t add more funds because of the bank holiday. I see SLV and VXX and I cry. Hopefully still some opportunities on Tuesday when the funds clear but I’m going to miss out on like an extra 150 bucks when it all clears green on Monday. Only my positions from Friday are useable.

type_error

VXX is gonna drop faster than your wifes panties

AffectionateAd7980

Are you waiting for the bubble to pop? If you are invested in the bubble are you going to sell at the bottom to buy something else? Are you out of the market waiting for a sale? If you expect a crash you can buy options or something like VXX to hedge against a crash. If you are trying to avoid drama you can invest in non-tech indexes (energy, utilities, REIT, etc.). We are heading toward high inflation with low bond returns (i.e. real loss from fiat currency instruments). USD is going to lose value quickly during the next few years, at least. There is a reason gold is on a tear. My guess is that China will come out of this the best, they make almost everything the world needs. However, investing in China has it's own issues. Who knows maybe AI will save the world, but things don't usually work that way. Wealth consolidation in the hands of a smaller and smaller group of unwise people never leads to long term stability. The real question is how will the instability be manifest. Just remember, Keynes said "Markets can remain irrational longer than you can remain solvent". Market could run fire hot for years more. Keep in mind that more and more stock wealth is concentrated into a smaller and smaller pool of very wealth "true believers". Those numbers you see aren't what a stock is really worth. They are what somebody last bought it for. The value of a stock is only what someone else is willing to pay when you sell it. True believers will pay any price not to miss out on the future. When their faith breaks or is shaken they will accept almost any price to escape their lost dream.

SavedSaver

Not a big player but an old one. LOL. I always have a blended stock, long/short option exposure. I pay close attention to trades that look like won't work out and neutralize them but in general I load up on VXX (as I did in the past few weeks) to hedge the overall position to some degree. VXX is great, it is not a futures with short expiration or an option with rapid decay and the management fee is trivial compared to it's moves. On any up swing my hi Beta stocks jump and outperform the loss on the VXX. I trim the stock positions or hedge at extremes of the vol bands so on a down swing I am less long and re load same or other symbols that give better entry signals. On low priced active stocks I like to sell OM calls and puts beside being long the stock and manage them. Keeps me on my toes but helps me to have a feel for momentum. Some days I ease up when pnl is too good to be true. On Friday my accounts were marginally up and I have added to a few stocks that outperformed. In my experience stocks that stay steady in chaotic conditions will lead on any recovery move.

blarenales

VXX and SQQQ hedge calls printed $$, always hedge guys

smitra00

Short NASDAQ by shorting TQQQ and shorting SQQQ as a hedge. Long VXX and also short VXX as a hedge. Long XLF by shorting FAZ Long TLT by being long TMF Neutral semis by being short SOXS and also short SOXL at the same exposures.

Iamawaffle

Put about 15k on SPY 665p 1/16/26 and VXX 35c 1/16/26, I just got a feeling.

sharpetwo

Stop trading when VIX is about 40 is generally a good rule of thumb. Before you stop, your last trade should be buying a lot of stock. It usually is a (very) profitable trade give it 6 months, especially if nothing was fundamentally broken in the market place but the shock has a path to resolution and the economy not in complete shumbles. If you really have to trade at that moment sell long dated calendar spread (3m/6m or 3m/1y or 6m/1y). But the best trades at that moment were not necessarily the most intuitives: selling puts or generally 20 delta strangle in VIX/VXX was pretty profitable. Vol of vol is also mean reverting and had to go down give it enough time (3m).

blarenales

VXX and SQQQ calls as insurance 

stocksandwatches

What black swan insurance are you buying? I was looking at VXX calls today, but not sure what strike and date to get.

smitra00

Long Dollar/Yen Short Euro/Dollar Long VXX Short TQQQ and short SQQQ,: Net short NASDAQ with SQQQ short as a hedge. Short SOXS and short SOXL: Net neutral position on semis. Short FAZ

penguincheerleader

Covered calls on VXX, I like to think it makes me a less retarded bear.

Rusty_Bicycle

For the past several weeks I’ve just been buying at-the-money calls in precious metal and bond ETFs with 2026 expirations and rolling them up when I’m above 50% profit. Up 64% YTD. I’m tempted by GDX, IBIT, and TQQQ, but at lower prices. And I’m also thinking about VXX calls.

friedbymoonlight

Reddest day in months and VXX +.55

Thisispaartaaa

Yeah man, don't fuck with the vix...UVXY, VXX..just fucking scams

sharpetwo

You’re asking two opposite things at once: fastest and safest. In markets those don’t usually overlap. 30% OTM calls after a pullback are lotto tickets. You need a moonshot move and you’re fighting decay. Shorting VXX calls when VIX is high sounds good, but timing mean reversion is brutal and you can get blown out if vol spikes again. You need some hedge on that position. LEAPS or staged call buying is fine as directional bets, but that’s not a safe double. That’s just leverage with a time cushion. In fact, you can still lose quite a bit depending on the path: the stock can go up but if IV was really high, that will impact your pnl. Overall, buying the dip (which is what all your positions are) is not a bad strategy. You need to enhance the "safe" aspect of your strategy to make it work. I would say that a combination of selling VXX calls and buying some SPX tails can get you there. But you will still need a good view on the vol surfaces to know which call to sell and which puts to buy. Good luck.

iron_condor34

Selling VXX calls when the vix is "high" is no where near safe.

No-Improvement3164

Even VXX was green today

Beloved_Mango

VXX has entered chat

MossfonBVI

VXX holding up

Mengs87

What would you buy as a cheap Armageddon trade, say within the Oct-Nov crashy season? I was thinking of VXX but the IV on the calls is sky high. Calls on SPXS?

friedbymoonlight

Happened to me once with VXX, I was terrified because it can be super volatile. Monday morning, I bought cheap otm calls to protect on the up side. Then I covered the shares at a small loss. In hindsight, I could have waited 3 hours and made a profit. But I really hated being in an accidental position.

fresh0pl

VXX 100 year low

No-Improvement3164

VXX 52 week low. Sensational!

Thisispaartaaa

those fucking vix futures tracking etf's are complete utter garbage...just stay away from the vix altogether....if you want to short the market, buy a market short like spxs (3x inverse leveraged S&P etf) or something like that. 3x might be a hair volatile...you can find 2x leveraged and just 1x inverse....depends on your level of risk. VXX and UVXY are just a waste of time in my opinion.

CapDris116

Why is VXX down if the vix is up? Can someone explain to me?

Pools4Adventures

Why VXX moves sideways?

Pools4Adventures

Cant read chart so i bought VXX calls

Pools4Adventures

Herer we are. Chat GPT says Spy puts and VXX calls today

Pools4Adventures

Chat GPT says Puts and VXX calls

thethrifter

SPY up, GLD up, REIT UP. Mkaes sence. But VXX up as well?. I need an autist to explain as this seems like covered cals are free money.

Sick0h

Someone help. I understand leveraged ETFs and shit, but what I don’t understand is what UVIX is tracking. It doesn’t give daily 2x VIX but VIX futures, but what the fuck if the ticker for VIX futures. Is VXX the closest/one of the correct VIX futures it essentially tracks.

sharpetwo

That double tap is not really two bullets in the same chamber but turning your position into a spread. However you have to be aware of a few things starting with synthetic position 1/ Buy call + sell put = synthetic long stock. You have not doubled your upside, you have just recreated linear exposure with all the downside. 2/ Buy put + sell call = synthetic short stock. Same story. Now if you space your strike a little, you are now building a risk reversal, which in some instances, can be a very good idea. They are powerful when skew is lopsided. Think equity indices: puts trade rich (everyone hedges with them), calls trade cheap (fewer natural buyers). So if you are bullish, you can sell that juicy put premium and recycle it into a cheap call and suddenly your convexity costs almost nothing. Flip it the other way around and you can build cheap downside hedges by selling upside calls everybody wants and funding your put. And you can do that accross tickers if and only if they react to the same underlying event obviously. For instance - selling expensive VXX calls to buy "cheaper" SPY puts. That is where the “double tap” makes sense: you are not just layering trades, you are exploiting skew mispricing. If you are just doing it on a single stock without paying attention to skew, you are probably just paying spreads and adding the cruel idiosyncratic risk. On indices with persistent put skew, it is one of the cleanest ways to lever up a directional view while keeping risk/reward aligned. Good luck

MCODYG

I buy 65-75 delta puts on VXX about 120 days out and roll around day 75. Works quite well

sharpetwo

Let's go back to some basics and make sure we are aligned: In contango (front IV < back IV), the short option you sold (shorter dte) tends to overstate realized volatility and decays toward reality faster than the long back option (longer dte). That carry is where the edge lies and you can think of the back as a hedge against sudden rise in vol. In backwardation (front IV > back IV), short-dated vol tends to underperform because once again, it must converge toward realized from above. Selling that is dangerous, and long calendars (yes it is confusing, but technically speaking a long calendar is long front and short back) are less attractive. That is why funds like VXX bleed in contango regimes: they constantly sell cheap stuff to buy more expensive stuff in the back. In SPY options you can be on the other side of that, clipping theta as front IV converges toward realized while your long vega still holds. So back to your question: rolling calendars is not like being long VXX in the sense that you are not condemned to structural decay. You are, however, exposed to the shape of the vol curve. If contango relaxes (front lifts, back holds), your calendar wins. If the curve flattens because front vol spikes harder than the back, your calendar loses. In your case it seems like you want to be long a calendar because you are anticipating a spike: look at the SPY term structure, and even the VIX term structure. Both of them strongly disagree with you at the moment, and structurally a long calendar (long front IV) will bleed as long as realized doesn't spike and tilt the term structure at least flat. The cleanest way to express your idea right now, would be to be long VXX (once again, that is litterally what they do: buy front month VX futures and sell the back). Open a chart of VXX right now .. it may not be a great idea. It was much better when the term structure was flat and uncertainty was all over the place. Good luck.

IronyElSupremo

Easiest is buy an “ESG” fund. Calvert funds have the longest track record since the 1980s for [iirc] religious objectors but probably “active” management with their “non-vice” approach. Still Calvert are the long term players, but there’s various ESG-screen index ETFs at mostly iShares (too many to list here, but XVV, USXF, and DMXF are relatively low cost) .. but Vanguard released 2 recently. Thing with ESG is the companies have responded to them, so you get big oil companies but not a small solar company that can’t afford the HR. Another idea is direct indexing (Fidelity) where you hold the individual stocks .. screening the holdings of a top 50 (XLG) ETF or even top 100 global (ishares IOO) ETF against the top ESG large cap holdings (use VXX, USXF, DMXF). The late Jack Bogle theorized buying and holding such a DIY index could slightly beat the S&P 500 over time. Another idea is go with momentum index ETFs (Invesco’s SPMO is has the best returns) and rebalance annually. You can say you’re “selling” any problematic stocks; probably pair with something like low cost Vanguard or iShares core bonds for stability (iShares even has an ESG bond index .. basically big bank and Treasury bonds). May even be some green lending. Could combine the last 2 approaches too.

Agile-Lingonberry704

look at Lucid. I think VXX as well

General_NEARD

Looking at the 5 year chart for VXX, it's coming down from a value 2000 to where it's at currently. It inherently depreciates a bit if the market goes sideways or up. Imagine have put LEAPs on it from 2020... what a ridiculous possible gain that would have been.

JayRoo83

Closed the SPXS/UVIX/VXX shares pre market, will close the puts at open It's nice when your day is done before it technically starts

Zauberstaby

Also, I had a better stomach to the lows this year, most recently, and not to sell, and plug my nose every now and then and buy when others were selling. Which my margin would be up anyways at that point. Gotta grab some deals! It helps owning VXX UVXY UVIX at that time, and then switch to SVXY SVIZ ZIV. Made some profits. ZiV is an interesting one. Pays about 24% dividend equally distributed to each month. I'm not up on that one. Or on IIPR. I've owned that one for a while, just like AEM.

Valuable-Mission9203

VXX and UVXY are just ETPs over VIX futes, and you can read the CBOE paper on how VIX is built, it's just 30-day variance, pulled directly from the SPX options IV smile. Your proposed position has high compounding daily contango bleed from rolling the futes and rebalancing, and low liquidity. SPX/SPY options let you get the same trade long vol convexity . Consider a long LEAP put financed with rolling bull put spreads, cheap convex long vega with payoff on any spikes in IV mostly divorced from delta, with risk tightly bound to a narrow range about the short strikes at expiry on the front leg. UVXY/VXX persist because they’re simple to trade and well marketed, despite being structurally poor long-term holdings. Long positions mostly subsidize the APs and the sponsor through roll decay and fees. Even in backwardation, when the roll may briefly favour longs, the effect is fleeting and never offsets the product’s long-term structural drag.

OptionsJive

Because with VXX and UVXY you can build unique asymmetric, inversely correlated risk profiles that you just can't replicate in SPY/SPX.

EdvardMunch

about lost all my money past month on puts, this week decided to take my tiny bit of cash to hop into VXX, perfect move

doirrr

49k position on VXX calls incoming second week of September

JayRoo83

Probably going to regret this but adding to my SPXS/VXX/UVIX position 30% in on that, 70% cash still

Relevant_Pepper7

VXX calls

OptionsJive

Not really. Buying VIX calls has the same issue. I love VXX/UVXY broken-wing butterflies and ratio spreads. You can also synthetically get long volatility using calendar spreads on equity ETFs.

JayRoo83

I feel like I'm gonna regret not funneling more money into VXX/UVIX while VIX is below 15

Nghtmare-Moon

VXX and SPY are both green… I’ve seen this before

friedbymoonlight

I remember when it took a pair of big brassy testicles to be a market maker. There was no internet, no financial networks— just the mad badassary of throwing capital into the animal spirits of an inefficient market. What have we become? Ants! Ants, I say! Awaiting the moves of emasculated whales to set the lead? I think not! No! I will strike my own way like the greats of yore! >! 3 x VXX 36 C 8/29 !<

AffectionateAd7980

That's not really the way to think about it. Stocks move in a very jerky motion. If you miss the top 10 up days on any stock you miss 90% of the profit. This is why timing the market is so difficult. It sounds like what your real question is about fear. How do I preserve capital while still insuring profit. How do I avoid the pain of lose and what might have been. People are often bad traders because they can't control their emotions, leading them to buy and sell at exactly the wrong times. I have exactly the same problem and it only gets worst as your account balances grow. First, at some point you will lose money, accept that as fact. Don't buy things you aren't willing to hold or get out of with an automatic stop lose (i.e. decide up front what you are willing to lose). This is why so many experts recommend buying indexes then not touching them. The balance will go up and down ... you hope when you need it that it will be up. Don't invest what you can't afford to lose and don't get stuck on the idea that you can't afford to lose anything. It sounds like you are in pretty good shape. If you are close to retiring, you might want to move to a fund that is balanced between stocks and bonds, bonds becoming a larger part of the asset the closer to your expected retirement date. Make sure you understand the tax ramifications of selling positions in your brokerage account. The idea is to control risk, not maximize profit. After the election last year I bought a good bit of VXX (meant to index the VIX, i.e. volatility/risk). I didn't do it to make a profit, I did it to sleep at night. I set three progressively larger auto-sells. If all those hit I will make a lot of $ ... but I will have lost a lot of $ because the only time those sells will hit is when the market is in some sort of panic. My other stocks will likely be killed, but I'll make enough to not worry until my other stocks come back. If nothing bad ever happens then I'll probably be able to sell it at a later time for somewhere around what I paid (i.e. I will likely lose a bit due to inflation and lost opportunity). I'm NOT telling you do to this. What I'm telling you is to find ways to make inexpensive bets that balance whatever risk you perceive. Diversity into a number of areas. If you fear the falling dollar buy a bit of gold or Swiss bonds. Small hedges that provide protection while you wait for your equities to grow. The higher the risk the smaller the bet. The goal isn't to become so rich you don't have to worry, because that amount doesn't exist. The more you have the more you worry about it. The goal is to have enough to live well and sleep well.

Relevant_Pepper7

Have some for one week on VXX waiting for the 21 peak

tropicalia84

VIX below 15, vol ETFS like UVIX, VXX, UVXY all at all time lows - there is no premium.

nyse25

Do VIX ETN's count? You can trade some of them like VXX but not VIXY even though they derive from the same instrument , /VX30.

OmgJosh925

I haven’t gone to the dentist since before Covid. Mostly both because I’m lazy and I’ve never had a cavity. Then my family dentist died so I go to another and they say I had 8. It’s been well over 5 years and no aches or anything to infer progression of cavitation. Dentists have the highest suicide rates because most are scammers that can’t live with themselves. Get an electric toothbrush and floss and you’re good. OP, convince your family to follow your position on those VXX calls. HELOC and yolo everything in the bloodline so you don’t fall into the trap

Pax-Britanica

This ninja saying calls ON VXX. He ain’t wrong at all, not one bit. Those are going to be your money makers ma little regard

obeysanic420

holy fk im dying OP gona put that 2 bands to VXX calls and go back to 0

anddocallmeshirely

Fair enough. Best advice in that case is to become some sort of dental criminal, breaking into nursing homes, hitting geriatrics with nitrous, stealing their gold fillings and prescription pills, selling that shit instead alongside your bussy behind the nearest Wendy’s and of course full porting all of your earnings into UNH to hopefully at least pay the principle of your current loans with dividends… Or maybe those VXX calls will work out I guess, I don’t fuckin know

kcyc2123

Huge $VXX calls getting bought…40c https://x.com/salmaogs/status/1956402342296719405?s=46&t=eBcWtMH8ZusdmKUkgtRuag

SavedSaver

I have VXX longs $1 higher, even few days of drop in the market may make them fly make them fly. Look at the weekly chart.

General_NEARD

Yeah, I have some VXX put credit spreads 41/40 that I picked up when VXX had dipped to 41.10 for the first time. I thought there was no way it would drop below 40 with all the pending data this week... but here we are. lol...

SavedSaver

I am long hi beta stocks so while I am underwater on VXX it's not critical yet

friedbymoonlight

VXX keeps chopping between 39,40 and 39,52.  It’s going to break in some direction 

tendiemountain

VIX plays are really interesting. We know something bad will happen and VIX will spike eventually. That will pass and it will come back down. All you have to do is buy when the VIX is low, sell when it is high and short when it hits the top. Really simple. Yes. Unfortunately, it isn't that easy. It is important to understand how the VIX works. It is based on futures contracts and is very complex. All of the VIX ETFs balance different contracts to represent the VIX as best as they can and what they are trying to do. Sure, some of them are close but none of them are perfect. I wish I could explain it better/beyond that but I am just a regard. You have to read up on it if you are going to play the VIX/UVXY/VXX/etc. Then there is the aspect of leveraged stocks. This is extremely important to understand how they are rebalanced. In the right environment, buying leveraged stocks are a goldmine. For example, this last run up since the tariff announcements. It works differently when things begin to chop because on how they are balanced. A quick example would be QQQ and TQQQ. Why aren't we all invested in TQQQ? Stocks will go up. 3x leverage is a sure win? Look at Nov 2021, the height of COVID recovery, QQQ is \~411 and TQQQ is \~92. Fast forward to today, QQQ is 575 and TQQQ is 92.5. If you had invested money in QQQ, you would have gotten a huge gain. TQQQ? Absolutely flat. This is because of the rebalancing and decay. Again, I'm just a regard and this is above my pay grade as well, but it isn't near as simple as it appears at first glance.

General_NEARD

Still holding? VXX got drained on Friday's steady rise. I'm thinking Tuesday's pending inflation report will give it a rise again end of day Monday and maybe through the week with additional economic reports coming out.

-A-7

To do what I think you’re looking to do, you’re going to want to buy derivatives off VXX or other similar products. Not the actual VIX itself.

TheRealSlobberknob

The index itself. I use Robinhood, but before they added the index, I used VXX.

alone-in-the-chat

Is VXX ok?

XXLepic

Time for VXX VIX buying 😂

XXLepic

IM ALL IN ON VIX. VXX. EASIEST MONEY ON EARTH. Profit from tariffs just like April catch. Easiest money ever.

Puzzleheaded-Image-4

Bools say NO! VXX says GO!

RillTread

How long do I hold these $42 VXX calls that expire eod? Up 345% lmao

RillTread

Probably should sell my VXX calls that are up 340% huh?

SavedSaver

buying VXX at this level is an assymetrical opportunity

RillTread

Bought VXX calls at exactly the right moment

NomSaneMan

Nah. Vix calls are second derivative. You want VXX calls to get to the 3rd derivative

Puzzleheaded-Image-4

I'm selling all of my US stocks and going 100% VXX until the correction is over. WCGW?

Direct-Spot-1693

VXX

General_NEARD

Of course they don’t trade opposite. Only assumption is you implying I thought that… that’s _literally_ an assumption and a blatantly obvious one that’s incorrect. VXX holds support where it’s at now and decays when the market ramps up. You can correct me on this one, because I don’t know precisely how the math works, but I’ve made money on it almost every time, so a rough understanding is probably good enough. 🤷‍♂️

Striking-Block5985

Lot assumptions there, and GLD , SPY don't always tarde opposite I think thats a rather crude way of investing VXX is decaying instrument btw , garanteed to lose money over time, it is never intended to be something on hold overnight, it resets every so often and prceeeds to zero again

jesuscat2000

Appreciate your input solid points. Just to clarify my approach, not to push back: • Yes, short-dated expiry was intentional. It’s a high-conviction, event-driven setup (FOMC + earnings week). Full risk accepted from the start — it’s a leveraged, asymmetric play. • The market environment (low vol, contango) is exactly why the VXX decay thesis works here — unless there’s a volatility shock, the structure favors continued drift lower. • On execution: Not 500 contracts at once. I scale in tactically, using limit orders to control slippage. • Delta 0.80 is deliberate. This isn’t a volatility play — it’s a directional trade with defined timing and risk. Would be curious — if you were given this structure, what tweak would you make without changing the intent? Longer expiry? Lower delta? Always open to sharpening the edge.

RicksDev

**I asked an AI to analyze this and this is what it came up with (curious what ppl think about its analysis):** Analysis of Your VXX Put Option Strategy I've analyzed your proposed VXX put option play and have several important observations and concerns to share: Key Concerns & Issues: 1. Expiration Date Problem: You're targeting August 2, 2025 expiration, but this is only 5 days from your execution date (July 29) This is an extremely short-dated option with massive time decay risk From the volatility surface, I don't see August 2nd as an available expiration - the closest is August 1st (4 days) or August 8th (10 days) 2. Current Market Environment is Unfavorable: VXX has been in a strong downtrend: -13.8% over the past month ($48.05 → $41.40) S&P 500 at record highs: Market summary shows continued bullish momentum with low volatility VXX volatility surface shows elevated IV: 80Δ puts for Aug 1st showing \~39% IV, Aug 8th showing \~39% IV This suggests put options are already expensive due to the recent VXX decline 3. Liquidity & Execution Risks: No specific liquidity data available for VXX August options Your $0.30 bid-ask spread threshold is reasonable but may be difficult to achieve on short-dated options 500 contracts ($105,000 total if filled at $2.10) is a substantial position that could face liquidity constraints 4. Strategy Logic Concerns: VXX is mean-reverting by nature - it has built-in decay from futures contango Buying puts on an already declining volatility product in a low-vol environment may be mistimed Your 0.80 delta target means you're essentially betting on continued sharp decline Market Context: Current VXX price: \~$41.40 (as of market close) Recent performance: Down over 13% in past month Broader market: S&P 500 and NASDAQ at record highs with subdued volatility VXX has earnings tomorrow (July 29) which could add unexpected volatility Questions for You: What's your thesis for expecting VXX to continue declining significantly in just 4-10 days? Why such a short expiration? Wouldn't longer-dated options reduce time decay risk? Have you considered that VXX might be near a short-term bottom after a 13.8% decline? What's driving this timing - is there a specific catalyst you're expecting?

No-Improvement3164

VXX penny’s from 52 week low

JewelerCautious9365

Betting on VXX with deep ITM puts in a tight window? Bold move. If vol crushes early in the week, it could print but if we get a macro shock or chop, theta's gonna eat you alive. Risk/reward’s tight, so timing better be sniper-level.

tachyonvelocity

The range of roll costs is extremely high, because black swan events are by definition not predictable. The roll is usually negative (a cost, due to contango) because there is more time for unpredictable events to happen (2 month out vs 1 month out). The roll can also be positive (a roll gain, due to backwardation) because volatilty is expected to fall in the future. This can happen immediately after a high volatility event, like Covid, liberation day, etc. but does not last long because the market will eventually demand a premium for time. This M1-M2 spread can be summed up as "the amount of volatility increase market participants expect in the future." In options lingo, this is similar to Gamma, so if you long VIX then have Gamma exposure. It can also be described as an "acceleration." The spread is high if market expects an acceleration of volatility in the future. If the expected volatility increase is not realized ("the predicted bad events don't happen"), then the spread is reduced, M1/M2 fall quickly and UVIX loses a lot of money. If the volatility event does happen, then the spread closes, as spot VIX increase, and will sometimes increase higher than M1. If the event is bad enough (trade war for ex) then M1-M2 changes to backwardation because really bad events are not expected to affect markets for a very long time. So what kind of periods can be thought of as "markets expect an acceleration of volatility in the future?" As I described, post-black swan events, volatility is actually expected to fall. However, as volatility falls as expected, the volatility event causes aftershocks like an earthquake, for example fear of the event causing real harm to the economy. So post-volatility events when volatility falls is when you see a high M1-M2 spread. An example is post-Covid. The spread is also higher when expected volatility is so low, that spot VIX falls to low 10s, or even single digits. In this case, volatility is expected to accelerate because such a low VIX is also abnormal. An example is 2016-2018 due to Trump's first term simulative tax cuts. Now to put some numbers, VXX is the ETN mostly showing roll costs, because it's not affected by things like leverage decay, so if VIX futures are unchanged, VXX rises or falls purely based on rolling futures. VXX is down close to -100% since inception, but there is an average yearly rate. T**his turns out to be around -45% per year, or daily, around -0.02% to -0.03% per day.**

aDonkeyWithACarrot

But if you think market will react then why would you buy VXX puts? Sorry I'm a bit regarded

Long-Blood

VXX

Kachowxboxdad

In case I’m right, I also bought VXX 43C and SPY 630P for tomorrow

kenji213

near-expiry UVXY (or other VIX-tracking shit like VXX and VIXY) just in case taco does some stupid shit at the fed in the next 30 minutes

Aggressive_Luck27

IMO long volatility (e.g. VXX, long straddles, etc).

Glad-Indication2173

!banbet VXX 100% 4w

Glad-Indication2173

!banbet VXX 100% 1m

Direct-Spot-1693

I put $105K into VXX yesterday. Spy RSI maxed. If tech earnings are weak or weak guidance, down we go.

Kachowxboxdad

Bought puts at the SPY top today because w the JP news there’s no reason for it to keep pumping to new ATHs but it took a moment to drop today VXX was less impressive vs just buying puts

Kachowxboxdad

Oh cool ATH for SPY VXX 45 Calls it is

greyenlightenment

amazing how VXX is flat YOY despite rising market

Direct-Spot-1693

I put $110K into VXX. Waiting for a market dip, sell at 20% profits, short it, profit again, reinvest, repeat. It’s free money.