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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. To read our full disclosure, please go to: http://www.equities.com/disclaimer


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Results for VXX
Options Answers
4 Aug 15 16:33:17
RT @MalcolmRoebuck: End of day Percentiles $VIX & $XIV See history & details at http://t.co/QRqIlwxyjU - $VXX $UVXY #Daytrade #Stocks ht…
Malcolm Roebuck
4 Aug 15 16:28:30
End of day Percentiles $VIX & $XIV See history & details at http://t.co/QRqIlwxyjU - $VXX $UVXY #Daytrade #Stocks http://t.co/7nEA9I3AGk
PamphletShop
4 Aug 15 16:15:09
$GOOG Google http://t.co/UKZ3MRGmpH #Yellen $AAPL $BAC $FB $SPY $GE $BABA $NFLX $C $FE $TSLA $F $T $UWTI $RAD $GILD $VXX $UA #FX #MUFC
PamphletShop
4 Aug 15 15:35:08
$SHAK Shake Shack http://t.co/UKZ3MRGmpH $AAPL $BAC $FB $SPY $GE $BABA $NFLX $C $FE $TSLA $F $T $UWTI $RAD $GILD $VXX $UA #FX #ES_F
Stockaholics
4 Aug 15 15:27:09
Platinum Subscribers Saw Our Picks Gain 4,000% In 10 Months! Subscribe Today: http://t.co/VPf7gjQhnU $LODE $VXX $RMKR
PamphletShop
4 Aug 15 15:24:54
$CZR Caesars http://t.co/UKZ3MRGmpH #Greferendum #stock $vix $tvix $uvxy #trading #cac #dax #ftse #asia #china $vxx $dia $aapl $FB
Stock Dawgzz
4 Aug 15 15:22:38
Our Members Saw Their Stock Picks Gain Over 550% In 5 Weeks! See The Major New Pick For Tomorrow: http://t.co/PkGNRnhRUn $LODE $VXX $RMKR
Penny Stockington
4 Aug 15 15:06:38
Our Stock Pick On $GEQU Nearly QUADRUPLED In Value In Less Than 2 Weeks! Special Update: http://t.co/9b1cAxuBRB $LODE $VXX $RMKR
Annie
4 Aug 15 14:56:28
$DIS and $AAPL in freefall and $VXX hardly blinks. That carry trade does not mean that ppl are bullish on $SPY
Victor Tkachenko
4 Aug 15 14:11:38
RT @VixCentral: $VIX futures contango settled at 7.79% Contango costs are high for long term $VXX , $UVXY holders Explanation: http://t.co…
Austyn
4 Aug 15 13:52:11
Did the vix actually go up a bit at the end of the day? $spy $vix $vxx $uvxy $xiv
John Miller
4 Aug 15 13:51:41
RT @SeekingAlpha: Can We Be 'Reasonably Confident'? http://t.co/O3ggCYRknx $SPY $VXX $TLT
Yvonne Dutton
4 Aug 15 13:34:39
$SHAK Shake Shack http://t.co/gIaLIyaAOF $AAPL $BAC $FB $SPY $GE $BABA $NFLX $C $FE $TSLA $F $T $UWTI $RAD $GILD $VXX $UA #FX #ES_F
Seeking Alpha
4 Aug 15 13:29:46
Can We Be 'Reasonably Confident'? http://t.co/zc60g1fztc $SPY $VXX $TLT
Stock Market Outlook
4 Aug 15 13:29:46
Can We Be 'Reasonably Confident'? http://t.co/7EH5AWWVGr $SPY $VXX $TLT
Seeking Alpha
4 Aug 15 13:29:46
Can We Be 'Reasonably Confident'? http://t.co/O3ggCYRknx $SPY $VXX $TLT
Deric Cadora
4 Aug 15 13:25:36
RT @HFTAlert: Video illustrates how to trade using the Delineator and Accumulators for yesterday, 8/3. $SPY $VXX https://t.co/dy2WWBBvJ4
VIX Contango
4 Aug 15 13:25:05
A standalone VDelta chart was added $VIX $VXST $XIV $VXX http://t.co/HJk9myDOQc
Top ETF Funds
4 Aug 15 13:23:18
Videocast: Huge call spread in VIX.. http://t.co/Ys7Zg2ymcH $VXX #ETF #ETFs #Stocks
Eli Mintz
4 Aug 15 13:21:56
$VIX futures contango settled at 7.79% Contango costs are high for long term $VXX , $UVXY holders Explanation: http://t.co/OtLNRueTcO
Silver Lining
4 Aug 15 13:02:38
Vol ETP Flow: $VXX $XIV $UVXY $SVXY $TVIX combined $2.216b flow (VWAP*volume) vs $1.553b in underlying $VIX futures. http://t.co/XpiGPsxcnz
CTZW
4 Aug 15 12:59:39
RT @HFTAlert: Video illustrates how to trade using the Delineator and Accumulators for yesterday, 8/3. $SPY $VXX https://t.co/dy2WWBBvJ4
arfi a arf
4 Aug 15 12:53:59
@RampCapitalLLC $VXX 16 FTW
Eternity101
4 Aug 15 12:51:38
$TICK said2 BTFD when -1,117.00 $TRIN on the other hand touched briefly .56 being UNDER .70 then theres $UVXY $VXX hitting ANOTHER 52wk lows
TAMAYO
4 Aug 15 12:46:22
RT @InterestRateArb: @HFTAlert https://t.co/47V8eHhddr $SPY $VXX
Eternity101
4 Aug 15 12:45:15
@riisacoff actually its 3 straight days of NEW 52wk lows in $UVXY $VXX https://t.co/0X6Py9kKc4 if one plays indices..these indicators golden
Cutlass
4 Aug 15 12:43:30
RT @HFTAlert: Video illustrates how to trade using the Delineator and Accumulators for yesterday, 8/3. $SPY $VXX https://t.co/dy2WWBBvJ4
HFTAlert
4 Aug 15 12:34:45
Video illustrates how to trade using the Delineator and Accumulators for yesterday, 8/3. $SPY $VXX https://t.co/dy2WWBBvJ4
Eternity101
4 Aug 15 12:31:15
RT @InterestRateArb: @HFTAlert https://t.co/47V8eHhddr $SPY $VXX
Æther Analytics
4 Aug 15 12:26:59
@HFTAlert https://t.co/47V8eHhddr $SPY $VXX
Stockaholics
4 Aug 15 12:25:27
Platinum Subscribers Saw Our Picks Gain 4,000% In 10 Months! Subscribe Today: http://t.co/VPf7gjQhnU $LODE $VXX $RMKR
PamphletShop
4 Aug 15 12:24:47
$CZR Caesars http://t.co/UKZ3MRGmpH #Greferendum #stock $vix $tvix $uvxy #trading #cac #dax #ftse #asia #china $vxx $dia $aapl $FB
PamphletShop
4 Aug 15 12:16:38
$SHAK Shake Shack http://t.co/UKZ3MRGmpH $AAPL $BAC $FB $SPY $GE $BABA $NFLX $C $FE $TSLA $F $T $UWTI $RAD $GILD $VXX $UA #FX #ES_F
PamphletShop
4 Aug 15 12:13:05
$GOOG Google http://t.co/UKZ3MRGmpH #Yellen $AAPL $BAC $FB $SPY $GE $BABA $NFLX $C $FE $TSLA $F $T $UWTI $RAD $GILD $VXX $UA #FX #MUFC
Penny Stockington
4 Aug 15 12:05:45
Our Stock Pick On $GEQU Nearly QUADRUPLED In Value In Less Than 2 Weeks! Special Update: http://t.co/9b1cAxd103 $LODE $VXX $RMKR
Harry Wanger
4 Aug 15 12:01:27
Ok. Time to slam $VXX and start the slow ramp up in $SPX $SPY. Then green in last 5 min. Same as it ever was.
Stock Rocket
4 Aug 15 11:58:21
Our Penny Stock Alerts Gained 550% In Less Than 6 Weeks! Check Out Our New Plan: http://t.co/BkSWN0kRab $LODE $VXX $RMKR
StockenheimerSchmidt
4 Aug 15 11:58:13
Huge Moves On Our Penny Stock Picks Lately! Big New Pick Tomorrow: http://t.co/bBikX3EmVd $LODE $VXX $RMKR
IB Traders' Insight
4 Aug 15 11:35:48
Why to Expect More Volatility Ahead. http://t.co/t3DBw8nhBC @blackrock #macro $SPY $DIA $QQQ $IWM $TLT $VIX $VXX $HYG http://t.co/BOg0lAUXTK
Don
4 Aug 15 11:35:28
good spot to short $VXX for the day
Frank R / ClueLess8
4 Aug 15 11:34:05
$VIX $VXX $SPX $VVIX <STUDY the CHARTS> Market Retracement in Progress http://t.co/J63iIRLVI8
Eternity101
4 Aug 15 11:28:31
$UVXY $VXX had their 3 straight days of making NEW 52wk LOWS - same day & following 2days sell off? Fri, Mon, Tues https://t.co/SD9o4VdnCh
Кира Жукова
4 Aug 15 11:25:18
RT @DayTradersGroup: $AAPL Remember this chart from Monday? http://t.co/snblISku09 $fcx $nem $gGLD $GDX $AMZN $vxx $aig $TBT #OPTIONS
Paul Henry
4 Aug 15 11:24:40
Our Penny Stock Picks Have Gained 3,600% In 10 Months! Check Out Today's New Pick: http://t.co/t0r9UuegVH $LODE $VXX $RMKR
JoyBiz
4 Aug 15 11:18:39
>$SPY pushed into yesterdays lows, first long hedgers appear, not much drama in $VXX
Michael Cook
4 Aug 15 11:18:25
Our Stock Alerts Gained Over 550% In 5 Weeks! See Our MASSIVE New Pick Coming Today: http://t.co/fGwKBvGfsd $LODE $VXX $RMKR
Michael James
4 Aug 15 11:16:36
After A Powerful 525% Gain On $GEQU, We Have A New Pick! Major News: http://t.co/oqwhLnQZ1q $LODE $VXX $RMKR
grapeswhiz
4 Aug 15 11:10:23
Some people have to run to get out of the storm. Some people benefit from the storm. $VIX short $SPX short $RUT $UVXY $VXX
PamphletShop
4 Aug 15 10:57:29
$GOOG Google http://t.co/UKZ3MRGmpH $AAPL $BAC $FB $SPY $GE $BABA $nflx $C $FE $TSLA $F $T $UWTI $RAD $GILD $VXX $UA $HPQ $ORCL $PCLN $JPM
PamphletShop
4 Aug 15 10:53:01
$GOOG Google http://t.co/UKZ3MRGmpH $AAPL $BAC $FB $SPY $GE $BABA $NFLX $C $FE $TSLA $F $T $UWTI $RAD $GILD $VXX $UA $HPQ $ORCL $PCLN $JPM
				
				
By  +Follow October 11, 2013 8:11AM
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