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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
Carolyn B Miciano
27 Feb 15 03:33:40
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OM_giveaways
27 Feb 15 02:20:08
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Rag Time Gal
27 Feb 15 02:14:48
RT @etfguide: #Volatility Sleeps, Risk Doesn't http://t.co/U7isE2BM6z $VIX $VXX $VIXY $SPY $QQQ $DIA
Stock Hobbit
27 Feb 15 01:23:08
Looking to follow professional stocks and options #traders? Try here http://t.co/ndv5bWOOj4 $VMW $QCOM $VXX $VIX http://t.co/VG2WI5iuVy
IH News Desk
27 Feb 15 01:22:36
$VXX Recent News Updated Friday, February 27, 2015 04:11:30 AM $FXI $URE $HYG $AUY http://t.co/XMIF6Z1C7W
lookn4wins
26 Feb 15 23:48:47
VXX -1.14% Stock Charts $VXX Barclays Bank PLC iPath S&P 500 VIX Short-Term Futures ETN (NAR) Any opinions on http://t.co/aPJmm04PDT
Rosner Stocks
26 Feb 15 23:18:46
$XLV News Updated Friday, February 27, 2015 01:59:26 AM $VXX $TNA $CBI $SLW http://t.co/CKN1aai1gG
Langan Stocks
26 Feb 15 23:10:10
$PBR Recent News Updated Friday, February 27, 2015 02:03:28 AM $ZIOP $VXX $ERX $QIHU http://t.co/0ritxrfIRm
IH News Desk
26 Feb 15 22:16:26
$XHB Percent Change Updated Friday, February 27, 2015 01:11:31 AM $VXX $YINN $BLTA $EEM http://t.co/IAwER1WWju
IH News Desk
26 Feb 15 22:16:18
$XLV Percent Change Updated Friday, February 27, 2015 01:11:31 AM $UTX $MON $VXX $VZ http://t.co/1di07acXOx
Langan Stocks
26 Feb 15 22:07:18
$WFC Percent Change Updated Friday, February 27, 2015 00:03:27 AM $DNKN $GOOG $VXX $SPLK http://t.co/3pCv5uvBTh
Langan Stocks
26 Feb 15 22:07:17
$VXX Investor Opinions Updated Friday, February 27, 2015 00:03:27 AM $EWY $QLD $ABX $RAX http://t.co/v4iIbe4BmD
Jeff Quiggle
26 Feb 15 21:41:09
$MACRO > $QQQ $JNK $IWM $SPY $UUP $FEZ $FXI $EEM $USO $TLT $VXX $GLD Yesterday > $QQQ $JNK $SPY $IWM $FEZ $UUP $FXI $EEM $USO $TLT $VXX $GLD
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26 Feb 15 21:31:11
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26 Feb 15 21:30:24
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26 Feb 15 21:20:07
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R J Sullivan IV
26 Feb 15 21:15:58
Commented on StockTwits: "@VolatilityWiz: $SPY $VIX $VXX Bubble Bubble http://t.co/iwtEWdCc8B" http://t.co/rtM5i5N9di
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26 Feb 15 20:35:50
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Arthur Burkham
26 Feb 15 20:30:03
RT @OpenOutcrier: Greece may default on IMF next week. http://t.co/YIgG5SLTIc $vxx $fxe $spy
CapitalistWorld
26 Feb 15 20:29:00
RT @OpenOutcrier: Greece may default on IMF next week. http://t.co/YIgG5SLTIc $vxx $fxe $spy
IH News Desk
26 Feb 15 20:13:42
$XLY Percent Change Updated Thursday, February 26, 2015 10:11:29 PM $BIOC $VXX $TWTR $XLV http://t.co/2OBSXYkprn
Rosner Stocks
26 Feb 15 20:13:35
$VXX News Updated Thursday, February 26, 2015 10:59:25 PM $EWY $DECK $BLTA $GOLD http://t.co/K4BqiTxzQH
Rosner Stocks
26 Feb 15 20:13:34
$GDXJ Last Price Updated Thursday, February 26, 2015 10:59:25 PM $NEM $VXX $EFA $UGAZ http://t.co/uUQCPlqiaf
JL
26 Feb 15 20:04:18
$CATM Daily- $WBMD $S $FB $AMD $AMZN $BBY $ARNA $CVX $IBIO $LAKE $NSPH $QQQ $SPY $LAKE $NFLX $VXX $USO $VZ $S $V $WSM http://t.co/IJctWPSFFx
JL
26 Feb 15 19:49:47
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Aspen Trading Group
26 Feb 15 19:42:36
Looking to play VXX via some options - can't hurt to have a Lotto ticket in my pocket as the slow learners continue to buy stocks $vxx $vix
Volatility Analytics
26 Feb 15 19:07:19
$SPY $VIX $VXX Posted without comment: http://t.co/f19EVNwq9X
Langan Stocks
26 Feb 15 19:04:16
$ERX Company Info Updated Thursday, February 26, 2015 9:03:27 PM $VXX $GILD $C $TASR http://t.co/wAd1eGSm3T
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26 Feb 15 19:01:14
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JL
26 Feb 15 18:42:39
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Top ETF Funds
26 Feb 15 18:32:24
The S&P 500-VIX Standoff - Part 2.. http://t.co/c9KebPzLqO $VXX #ETF #ETFs #Stocks
Paula Treneer
26 Feb 15 18:30:12
RT @OpenOutcrier: Greece may default on IMF next week. http://t.co/YIgG5SLTIc $vxx $fxe $spy
PolgarStocks
26 Feb 15 18:15:32
$XLV Last Price Updated Thursday, February 26, 2015 9:07:28 PM $UCO $XLK $VXX $MRK http://t.co/u2X0JFKwXD
IH News Desk
26 Feb 15 18:12:38
$VXX Percent Change Updated Thursday, February 26, 2015 8:11:28 PM $DRYS $RSP $XOM $DIA http://t.co/617Z8ZR2hb
Stock Miner
26 Feb 15 17:48:59
RT @OpenOutcrier: Greece may default on IMF next week. http://t.co/YIgG5SLTIc $vxx $fxe $spy
Eli Mintz
26 Feb 15 17:37:33
@WearuatAj Every month you lose about the contango in $VXX and double that in $UVXY even if volatility term structure stays the same.
Carolyn B Miciano
26 Feb 15 17:36:06
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Diablo31x
26 Feb 15 17:25:31
RT @OpenOutcrier: Greece may default on IMF next week. http://t.co/YIgG5SLTIc $vxx $fxe $spy
Stockaholics
26 Feb 15 17:16:41
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PolgarStocks
26 Feb 15 17:14:26
$WNTR Percent Change Updated Thursday, February 26, 2015 8:07:28 PM $FB $XLF $MON $VXX http://t.co/3iGnGTjvO0
PolgarStocks
26 Feb 15 17:14:23
$QIHU Last Price Updated Thursday, February 26, 2015 8:07:28 PM $VTI $SWKS $VXX $MO http://t.co/fATQOdwhDn
Jay
26 Feb 15 17:12:50
RT @OpenOutcrier: Greece may default on IMF next week. http://t.co/YIgG5SLTIc $vxx $fxe $spy
OM_giveaways
26 Feb 15 17:08:10
Top 5 Stocks of 2015 Free HD Video!!!! $GOOGL $AAPL $TSLA $SSYS $VXX $VIX $SPY $SPX #stocks http://t.co/M2rcBOWo2Z http://t.co/IDb3P7vqK6
Stock Hobbit
26 Feb 15 17:08:10
Looking to follow professional stocks and options #traders? Try here http://t.co/ndv5bWOOj4 $VMW $QCOM $VXX $VIX http://t.co/jGJuULZDnb
Neversettle...
26 Feb 15 16:52:17
RT @OpenOutcrier: Greece may default on IMF next week. http://t.co/YIgG5SLTIc $vxx $fxe $spy
Dylan Petrin
26 Feb 15 16:45:27
RT @OpenOutcrier: Greece may default on IMF next week. http://t.co/YIgG5SLTIc $vxx $fxe $spy
The Daytrade
26 Feb 15 16:42:48
RT @OpenOutcrier: Greece may default on IMF next week. http://t.co/YIgG5SLTIc $vxx $fxe $spy
Open Outcrier
26 Feb 15 16:42:20
Greece may default on IMF next week. http://t.co/YIgG5SLTIc $vxx $fxe $spy
IH News Desk
26 Feb 15 16:11:24
$XLY Percent Change Updated Thursday, February 26, 2015 6:10:40 PM $SPXL $CSCO $DNAX $VXX http://t.co/jxrUzeExDB
Stephen s
26 Feb 15 16:07:33
RT @PolgarStocks: $VXX Company Info Updated Thursday, February 26, 2015 6:06:55 PM $PFE $FB $TVIX $MYEC http://t.co/2gLJi9RlF0
				
				
By  +Follow October 11, 2013 8:11AM
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