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VIX Short Term Futures (VXX) falls with CBOE Volatility Index on Potential Washington Deal

By  +Follow October 11, 2013 8:11AM
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ETFs tracking the Chicago Board Options Exchange SPX Volatility Index (VIX) have been among the most-actively traded over the past two weeks as well as some of the biggest movers. The VIX, which attempts to reveal market sentiment by tracking options trading in order to forecast the level of volatility over the next month based on that activity, has been on the rise lately as concern about the government shut down and debt ceiling negotiations had investors anticipating higher volatility. However, recent signs that the stalemate might be nearing conclusion, or at least that Republicans may be willing to pass a short-term increase in the debt ceiling, has the VIX declining and the ETFs tracking it moving accordingly.

The VIX fell over nearly 5 percent on Friday, prompting the iPath S&P 500 VIX Short Term Futures (VXX) to drop almost 2 percent and the VelocityShares Daily Inverse VIX Short Term ETN (XIV) to gain nearly 2.25 percent.

More Promising News From Washington

The most recent move in the VIX and its corresponding ETFs appears to be related to news that a meeting between congressional leaders and President Obama went positively. Sources are indicating that congress will vote on a 6-week increase in the debt ceiling as soon as Friday, significantly cooling market fears.

Other ETFs tracking projected volatility were on the move as well, with the ProShares Trust II ($UVXY) and the VelocityShares Daily 2x VIX Short Term ETN (TVIX) both declining close to 5 percent.

VIX, ETFs Go on Wild Ride

The VIX is often referred to as the “fear index,” as it’s commonly viewed as a measurement of investors’ concerns about the markets. And the government shut down had investors appearing afraid, based on their options trades. The index shot up over 30 percent from October 1 to October 8, prompting the iPath VIX Short Term fund to gain just over 15 percent over the same period. Then, beginning with news that Boehner might be willing to pass a short-term debt ceiling increase, the VIX dropped nearly 20 percent to where it is today with the iShares fund declining over 15 percent during the same period.

On the whole, both the iShares fund and the VIX have declined over the last three days to return to levels close to where they were at the beginning of the month prior to concerns of political stalemate driving market worries.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


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Results for VXX
Balázs Lukucz
23 Nov 14 00:39:27
RT @tradevolatility: 2015 $VIX Futures Expiration Days And Roll Period Lengths -- $VXX $XIV $UVXY $ZIV http://t.co/THKdkJkRJz
Investors Hangout
22 Nov 14 23:43:40
lookn4wins: VXX 27.92 Stock Charts $VXX Barclays Bank PLC http://t.co/xjLrVkAOMG
Investors Hangout
22 Nov 14 23:43:40
lookn4wins: VXX 27.92 Stock Charts $VXX Barclays Bank PLC http://t.co/Lk9mRReYjT
lookn4wins
22 Nov 14 23:41:52
VXX 27.92 Stock Charts $VXX Barclays Bank PLC iPath S&P 500 VIX Short-Term Futures ETN (NAR) Any opinions on V http://t.co/j9wKD5Mtlz
hft info
22 Nov 14 21:29:04
RT @sumixiwylody: Good Morning Traders!! Letas rock n roll today. $SPY $VXX #HFT
Tarana H
22 Nov 14 20:19:23
RT @Taarriqq: $BABA $GPRO $TSLA $FB $TWTR $SPY $QQQ $VXX $PXD $MPEL $CRM $WYNN How we traded with institutionals, plz share https://t.…
alex demache
22 Nov 14 17:22:36
RT @harmongreg: $SPY Trends and Influencers November 22, 2014 - Dragonfly Capital http://t.co/zeDejU1iql $IWM $QQQ $VXX $TLT $EEM $GLD $USO…
ur-trading
22 Nov 14 16:45:40
$VXX http://t.co/RCpB7RlRi8
Mark Brant
22 Nov 14 16:39:51
RT @tradevolatility: 2015 $VIX Futures Expiration Days And Roll Period Lengths -- $VXX $XIV $UVXY $ZIV http://t.co/THKdkJkRJz
Ian Nelson
22 Nov 14 16:38:26
RT @Taarriqq: $BABA $GPRO $TSLA $FB $TWTR $SPY $QQQ $VXX $PXD $MPEL $CRM $WYNN How we traded with institutionals, plz share https://t.…
Caelyn Grzelczyk
22 Nov 14 16:19:02
Good Morning Traders!! Letas rock n roll today. $SPY $VXX #HFT
TalkMarkets
22 Nov 14 15:03:34
The View From Far Above by Tim Knight $QQQ $SPY $VIX $VXX http://t.co/SWjOR0Bh4Z
Diane Hettwer
22 Nov 14 13:53:03
RT @tradevolatility: 2015 $VIX Futures Expiration Days And Roll Period Lengths -- $VXX $XIV $UVXY $ZIV http://t.co/THKdkJkRJz
Abdulaziz
22 Nov 14 13:46:21
RT @Taarriqq: $BABA $GPRO $TSLA $FB $TWTR $SPY $QQQ $VXX $PXD $MPEL $CRM $WYNN How we traded with institutionals, plz share https://t.…
EcoBizNews
22 Nov 14 12:30:39
RT @tradevolatility: 2015 $VIX Futures Expiration Days And Roll Period Lengths -- $VXX $XIV $UVXY $ZIV http://t.co/THKdkJkRJz
Cutlass
22 Nov 14 12:27:33
RT @Taarriqq: $BABA $GPRO $TSLA $FB $TWTR $SPY $QQQ $VXX $PXD $MPEL $CRM $WYNN How we traded with institutionals, plz share https://t.…
Eternity101
22 Nov 14 12:09:12
RT @tradevolatility: 2015 $VIX Futures Expiration Days And Roll Period Lengths -- $VXX $XIV $UVXY $ZIV http://t.co/THKdkJkRJz
Æther Analytics
22 Nov 14 12:06:27
RT @tradevolatility: 2015 $VIX Futures Expiration Days And Roll Period Lengths -- $VXX $XIV $UVXY $ZIV http://t.co/THKdkJkRJz
Trading Volatility
22 Nov 14 12:05:10
2015 $VIX Futures Expiration Days And Roll Period Lengths -- $VXX $XIV $UVXY $ZIV http://t.co/THKdkJkRJz
kenr0966
22 Nov 14 10:07:54
RT @Taarriqq: $BABA $GPRO $TSLA $FB $TWTR $SPY $QQQ $VXX $PXD $MPEL $CRM $WYNN How we traded with institutionals, plz share https://t.…
OPTIONS/STOCK EXPERT
22 Nov 14 10:07:07
$BABA $GPRO $TSLA $FB $TWTR $SPY $QQQ $VXX $PXD $MPEL $CRM $WYNN How we traded with institutionals, plz share https://t.co/wyClCbbzr3
G. Thomas Lackey Jr
22 Nov 14 09:06:15
"@harmongreg: $SPY Trends and Influencers November 22, 2014 - Dragonfly Capital http://t.co/0gDZxTEz6F $IWM $QQQ $VXX $TLT $EEM $GLD $USO "
Greg Harmon, CMT
22 Nov 14 08:49:21
$SPY Trends and Influencers November 22, 2014 - Dragonfly Capital http://t.co/zeDejU1iql $IWM $QQQ $VXX $TLT $EEM $GLD $USO $UUP $SSEC $VIX
Unrelated Nonsense
22 Nov 14 07:55:08
@georgepearkes @largecaptrader1 @BarbarianCap like levered $VXX. Brillz.
Payam Zamani
22 Nov 14 06:03:39
RT @JackDamn: MarketSci’s Mean-Reversion $VIX Trading Strategy http://t.co/zr6bM6jtCN System analysis by VMS. $VXX $XIV http://t.co/hPjVqKz…
Anmol Singh
21 Nov 14 18:41:26
Made today's Video Newsletter free so you can get a taste $STUDY $TLT $BTU $VZ $VXX $SPY $XLE $FB $TRUE $EWJ $GLD http://t.co/xCRB7hm573
Anmol Singh
21 Nov 14 18:40:06
Made today's Video Newsletter free so you can get a taste $STUDY $TLT $BTU $VZ $VXX $SPY $XLE $FB $KATE $TRUE $EWJ $GLDhttp://goo.gl/oDsRt7
Stockaholics
21 Nov 14 17:24:43
578% Gains On Penny Stocks in one month! Plus a New Pick Is Coming: http://t.co/2W3yKD2d5Q $LODE $VXX $RMKR
Richard Gobel
21 Nov 14 14:17:40
KirkSpano : I like the look of the stair-step higher in the $VXX that my algo number is displayin... http://t.co/BJSNouA2vM via Scutify
Jean Fonteneau
21 Nov 14 14:13:59
@CNBC FMHR "traders" really really nice this week: Long $GPRO in front of 2ndary, long $VXX - GoPro headed to $90? http://t.co/yG2tiXk7co
brian stu
21 Nov 14 13:38:03
RT @VixCentral: $VIX futures contango settled at 7.36% It is expensive to hold $VXX and $UVXY long term. If current trends continue, contan…
ARENA BURSATIL
21 Nov 14 13:36:51
publicando nuestro analisis tecnico semanal con cubrimiento a: $SPX $TSX $IGBC $Oil $VXX http://t.co/mxePcSDbrN
Rich
21 Nov 14 13:31:18
RT @VixCentral: $VIX futures contango settled at 7.36% It is expensive to hold $VXX and $UVXY long term. If current trends continue, contan…
Eli Mintz
21 Nov 14 13:28:15
$VIX futures contango settled at 7.36% It is expensive to hold $VXX and $UVXY long term. If current trends continue, contango>10% is likely
WallStreetStar
21 Nov 14 13:15:24
Nice day for Brazil stocks, $EWZ up almost 7%. Next week I am short $AAPL and $QQQ. Long $USO $VXX. I may get long $TWTR as well.
Helyn Bolanis
21 Nov 14 13:00:50
#timestamp Sold $VXX for PAMS 2 at $27.62
TRADING THE ODDS
21 Nov 14 12:51:40
Trading Volatility (#VRPStrategy) on Fri., 11/21/2014 : Long $XIV closed, switch to $VXX (market-on-close). http://t.co/VaqWnlQjDj
wsmco
21 Nov 14 12:51:27
Sold to open $VXX Dec 5 27 puts at .57
Agent Blowfish
21 Nov 14 12:28:25
Sold last third of $XIV at 38. Around 3% profit. All out of XIV now. $VIX $VXX
TV_Trading Ideas
21 Nov 14 12:25:02
$SDS $VXX $IWM I will ask you again! $SPY http://t.co/fn1IzKLoEb
Iskounta
21 Nov 14 12:25:02
$SPY chart: $SDS $VXX $IWM I will ask you again!. http://t.co/6XIGeCMMyH
Main Street Alpha
21 Nov 14 12:23:25
Moving the $VXX Nov28 $28C entry to .44 from .48
Zero Filter
21 Nov 14 12:13:05
#Bearish market call (new mkt highs flagging participation) #CNBC #CantorFitzgerald - Noteworthy given parade bulls all day long $SPY $VXX
Investors Hangout
21 Nov 14 12:12:08
lookn4wins: VXX 27.88 Stock Charts $VXX Barclays Bank PLC http://t.co/n7xnyb55tG
Investors Hangout
21 Nov 14 12:12:05
lookn4wins: VXX 27.88 Stock Charts $VXX Barclays Bank PLC http://t.co/0iq9MgHwCX
iHangout
21 Nov 14 12:08:41
http://t.co/vVojvWiBbX lookn4wins: Stock DD Board: VXX 27.88 Stock Charts $VXX Barclays Bank PLC http://t.co/6gkRFXaWSU
lookn4wins
21 Nov 14 12:04:23
VXX 27.88 Stock Charts $VXX Barclays Bank PLC iPath S&P 500 VIX Short-Term Futures ETN (NAR) Any opinions on V http://t.co/lNbpJrM8U1
Jack Damn
21 Nov 14 12:02:20
MarketSci’s Mean-Reversion $VIX Trading Strategy http://t.co/zr6bM6jtCN System analysis by VMS. $VXX $XIV http://t.co/hPjVqKzTon
TV_Trading Ideas
21 Nov 14 11:58:44
$SDS $IWM $VXX All day they are selling to you! $SPY http://t.co/bGU5AbuNkY
Iskounta
21 Nov 14 11:58:44
$SPY chart: $SDS $IWM $VXX All day they are selling to you!. http://t.co/W1R9QrzrnI
				
				
By  +Follow October 11, 2013 8:11AM
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