VXX?

Submitted by Codenameice t3_10pazzv in wallstreetbets

VXX pre Covid, pre Ukraine war, etc hovered between $200 and $60. Currently at $12. My high level view of the world is we are fucked and therefore VXX should be higher. Buying call options.

Agree?

3

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kholdstayr t1_j6jd532 wrote

I like this idea, but how far out are you going with the expiration?

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Codenameice OP t1_j6jdtff wrote

Replying to kholdstayr (#1,624,077)

Will report back once I’ve made a decision.

Planning on making the call on my gut feeling but I welcome any actual real analysis by anyone smarter than I

Edit: The 2025 spreads are fucked. Prob jan 2024

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jr1tn t1_j6jersp wrote

This post reveals a true WSB-level understanding of the structure of this ETF.

16

Waddayanow t1_j6jj5w9 wrote

Your view is high level regarded. VXX is expected to fall by design. It is the reason why it is not recommended to be held long-term. Do not compare its historical prices to current ones and conclude that the market is complacent.

5

Remarkable_World_351 t1_j6ls00a wrote

I had the same thought then did some research. If you think it will spike short term (days or week) this might be an okay play but long term you get fucked. This one has reverse split multiple times to stop it from hitting zero so previous highs are misleading. It tracks vix futures by buying close to expiring options and is constantly rolling them over and constantly loosing value. If you buy for a year out you may get lucky and have it spike due to a nuke being dropped in Ukraine or us defaulting on debt but otherwise zero chance this is worth more in a year vs now even if vix stays elevated this will go up momentarily then slowly bleed back to zero. By design this ETN looses value long term regardless of what the vix does

2