Replies to post #288530 on Option Millionaires

[CDFallon5]

VXX is an exchange traded fund that tracks the volatility index, VIX. Hence when the market sells off, the VIX, or "fear index" goes up.

[Laloo77]

Sure. The VXX is an exchange traded note which reflects short term market volatility. I made my statement because if you expect the market to go down in the short term, then you would expect the VXX to be up in which case you would go long. I did a simple google search and see what came up below.

VXX Is VIX

It has already been established that VXX is an exchange-traded note with returns based on the S&P 500 VIX Short-Term Futures Index Total Return. VIX is the commonly known name and ticker for the CBOE Volatility Index. VIX is a measure of market expectations of near term volatility conveyed by S&P 500 Index Option prices. The performance of VIX is very difficult to replicate in a portfolio for a variety of reasons. Because of this there is not a financial derivative that perfectly replicates VIX.

Btw, I am not a Financial Advisor or such expert.