5 Things Happen When a VX ETN Crosses the VIX

The VIX, VX Futures, and their derivatives are interesting because they all:
a) theoretically lag the S&P but sometimes don't, which is troublesome
b) serve as excellent S&P trend confirmation
c) are key and highly misunderstood mechanisms within the broader market fabric
d) are based on revised logic that assigns a number to "volatility" based on the weighted average put/call spread on the most out-of-the-money S&P futures contracts

They also provide near-perfect trading opportunities when certain thresholds are reached

Crossovers between the VIX and its ETN derivatives is one such threshold

5 Things Can Be Observed & Acted Upon When These Crossovers Occur

VIX UVXY VIXY

Commentaire:

To clarify, this has not happened yet. We were oh-so-close on Wednesday, but got "robbed" at the last minute, which led to a 50% reversal lol.

Somebody's gotta fix the vix

Transaction en cours:

Now would be a great time to buy UVXY puts..