Centre county Pennsylvania, USA | VXX is a popular (high volume) VIX ETN. VIX is a stock market volatility index. So, VXX long calls may be an efficient hedge for stock market volatility.
A recent example of that hedge is shown in the attached chart. It shows that premium at end-of-day June 17 2018 for VXX 42 calls, with expiration date July 20 2018, have increased 133% over the most recent 5 market day period. For long calls thats an (unrealized) profit of 133% (less bid-ask spread, commission, and other fees). Strike In this example was chosen for premium closest to 50 cents (50 cent VIX call trader strategy).
(VXX, 5 daY PERFORMANCE (full).jpeg)
Attachments ---------------- VXX, 5 daY PERFORMANCE (full).jpeg (60KB - 126 downloads)
|