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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
Carl Mac
29 Jan 15 06:19:02
$VXX potential for some upside
dailystockplays.com
29 Jan 15 06:16:12
VXX, UVXY, TVIX Gapping Up Premarket - How To Day Trade Them http://t.co/H0yE1cc3fL $VXX $UVXY $TVIX $XIV
GeneCala
29 Jan 15 06:15:41
Don't fool yourself people. Get your $SPY stop loss on... $VXX $SPX $QQQ $AAPL
Gr8wklyoptions
29 Jan 15 06:10:09
$MON $MOS $MS $MSFT $NFLX $PANW $PCLN $QCOM $QQQ $SBUX $SLB $SNDK $SPY $TLT $TSLA $TWTR $USO $V $VXX $XOM $YHOO
Rook
29 Jan 15 06:08:48
@roo5guy16 still holding $VXX #timestamp #trading
#SocialMedia NC
29 Jan 15 06:08:21
RT @anthbingo: @greensboro_nc yes you are making sense to me! $vxx $vix are my plays. Any ideas how to play?
ETFguide.com
29 Jan 15 05:57:15
BAM! Our #timestamped $VIX alert from 1/26 now +31% & still open http://t.co/V39AEFznsG $VIXY $SPY $VXX #Volatility http://t.co/0CBuTN9u95
Anthony b
29 Jan 15 05:53:07
@greensboro_nc yes you are making sense to me! $vxx $vix are my plays. Any ideas how to play?
Alexander Fernandez
29 Jan 15 05:49:03
$TSLA will continue to monitor indices and trade $VXX aggressively. Biggest winner so far this year. Trading volatility. Yesterday was huge!
Volatility Indexes
29 Jan 15 05:48:07
$VXX: 34.67 ▁▂▂▅▆▅▂▃▅▆▇▇▇▇▅▂▃▂▃▆
iHangout
29 Jan 15 05:36:43
chartguy89: 2015 Trending Stocks: VXX +8.34% Stock Charts $VXX Barclays Bank PLC http://t.co/EWo2YaZSds
#SocialMedia NC
29 Jan 15 05:36:20
RT @anthbingo: @greensboro_nc I invested $vxx I also do #realestate from jan 1st seen banks cutting fc prices 1/2 & selling that have been …
Russell Rhoads
29 Jan 15 05:30:17
$VXX traders - the strategy starts the day 68.79% February $VIX futures and 31.21% March - both down slightly in early trading
Anthony b
29 Jan 15 05:26:48
@greensboro_nc I invested $vxx I also do #realestate from jan 1st seen banks cutting fc prices 1/2 & selling that have been sitting for yr
Russell Rhoads
29 Jan 15 05:26:31
More info on previous charts - $VXX and $VXZ reaction on 10% $VIX days - data based on indexes - there were 180 10% moves from 2006 to 2014
Investors Hangout
29 Jan 15 05:24:15
chartguy89: VXX +8.34% Stock Charts $VXX Barclays Bank PLC http://t.co/pihV7KqjgL
Investors Hangout
29 Jan 15 05:24:14
chartguy89: VXX +8.34% Stock Charts $VXX Barclays Bank PLC http://t.co/ZL7cV1iqrH
EcoBizNews
29 Jan 15 05:23:45
RT @RussellRhoads: Distribution of $VXX (data is underlying index) daily price changes when $VIX is up 10% or more in a day - http://t.co/p…
Paul Woodward
29 Jan 15 05:23:26
RT @RussellRhoads: Distribution of $VXX (data is underlying index) daily price changes when $VIX is up 10% or more in a day - http://t.co/p…
Channel Guy Trader
29 Jan 15 05:22:59
"After the Bell Market" Summary VIDEO Must watch going into today's session. I cover http://t.co/Li18NRV2gS $SPY $ES_F $VXX $TF_F $XLF #SPY
chartguy89
29 Jan 15 05:22:22
VXX +8.34% Stock Charts $VXX Barclays Bank PLC iPath S&P 500 VIX Short-Term Futures ETN (NAR) Last Updated: 01 http://t.co/fwRrkUPbDz
Russell Rhoads
29 Jan 15 05:21:14
Distribution of $VXX (data is underlying index) daily price changes when $VIX is up 10% or more in a day - http://t.co/peIt7CPFFS
Anthony b
29 Jan 15 05:15:17
$vxx up again premarket.
Jamie Lissette
29 Jan 15 05:11:32
$vxx climbing
OM_giveaways
29 Jan 15 05:05:06
Top 5 Stocks of 2015 Free HD Video!!!! $GOOGL $AAPL $TSLA $SSYS $VXX $VIX $SPY $SPX #stocks http://t.co/vG4ZFnz7JJ http://t.co/65nv5PGwhh
PolgarStocks
29 Jan 15 04:21:36
$VXX Recent News Updated Thursday, January 29, 2015 07:07:30 AM $MU $CELG $RIG $GOLD http://t.co/Xhb8lC9LJm
Carolyn B Miciano
29 Jan 15 04:08:12
Course on Options simulation http://t.co/kamWSwNqeg $VIX $VXX $OEX
PolgarStocks
29 Jan 15 03:21:13
$AXP Financials Updated Thursday, January 29, 2015 06:07:29 AM $VXX $RUSS $UPS $FB http://t.co/3p5dkG6bw5
Stock Hobbit
29 Jan 15 03:10:08
Looking to follow professional stocks and options #traders? Try here http://t.co/v1eaRRes2Y $VMW $QCOM $VXX $VIX http://t.co/LIUSgw8rwM
Langan Stocks
29 Jan 15 03:09:16
$ODP Investor Opinions Updated Thursday, January 29, 2015 06:03:26 AM $SDS $VXX $VNQ $GPRO http://t.co/tmfjFXyHkK
Langan Stocks
29 Jan 15 03:09:10
$VXX Reviews Updated Thursday, January 29, 2015 06:03:26 AM $CSCO $VSLR $NEM $DE http://t.co/9dVhJxV6Sv
Carolyn B Miciano
29 Jan 15 02:40:40
Why the Bear call is called a credit spread http://t.co/14AbVvRrwT $VIX $VXX $OEX
IH News Desk
29 Jan 15 02:23:07
$ILMN Last Price Updated Thursday, January 29, 2015 05:11:31 AM $WFC $XLU $VXX $QLD http://t.co/a4bUsVql8D
The American
29 Jan 15 00:14:33
ETFs Of The Day: $JDST 16.80% $UVXY 16.43% $TVIX 15.52% $ERY 11.77% $DUST 11.27% $RUSS 9.57% $VIXY 8.47% $VXX 8.34%
royfberger
29 Jan 15 00:14:05
Barcelona! Take me back! $XLF $FXI $BAC $KO $EEM $TLT $EWT $COP $QQQ $VXX $XOP http://t.co/JUFJoVNc4s http://t.co/PBXToUI9I3
OM_giveaways
29 Jan 15 00:04:08
Top 5 Stocks of 2015 Free HD Video!!!! $GOOGL $AAPL $TSLA $SSYS $VXX $VIX $SPY $SPX #stocks http://t.co/vG4ZFnz7JJ http://t.co/4F6WhOciHg
Stockaholics
28 Jan 15 23:12:42
Our Penny Stock Picks On $IJJP $TUNG & $QLTS Gained 117% In 3 Days! New Pick Coming: http://t.co/c7bXDM1sfp $LODE $VXX $RMKR
Stock Hobbit
28 Jan 15 22:54:07
Looking to follow professional stocks and options #traders? Try here http://t.co/v1eaRRes2Y $VMW $QCOM $VXX $VIX http://t.co/Lq6sKXX835
Matt K
28 Jan 15 21:35:16
RT @MktOutperform: Both down since '14, but long vol ETF now down less than short vol ETF. Changing environment. $VXX: -18% $XIV: -21% http…
Charlie Bilello, CMT
28 Jan 15 21:30:38
Both down since '14, but long vol ETF now down less than short vol ETF. Changing environment. $VXX: -18% $XIV: -21% http://t.co/5zcLb9hxz4
Investing Jungle
28 Jan 15 21:26:52
"$SPY Futures bear flagging on the 30min with a 40 handle pole, target 1954 on $ES_F $SPX $VXX $QQQ http://t.co/Th6FdhwOZk" And she broke
TV_Trading Ideas
28 Jan 15 20:54:15
Still want $40 to test soon. $UVXY, $TVIX $VXX http://t.co/D5xaX0x0hL
Bradley
28 Jan 15 20:52:08
I love this trading girl! $XLF $FXI $BAC $KO $EEM $TLT $EWT $COP $QQQ $VXX $XOP http://t.co/l9JkTCL0PV http://t.co/hhYNyV6b2H
BB20
28 Jan 15 20:51:24
$VPOR $IJJP $VGID $UCPA $VXX $TVIX $JNPR $MFA $VGPR $AFPW ... either holding, or watching.
Dumb Money
28 Jan 15 20:38:20
Patiently waiting for $VXX in the $40s to get my next short batch. Might do $XIV long instead.
Investing Jungle
28 Jan 15 20:38:19
$SPY Futures bear flagging on the 30min with a 40 handle pole, target 1954 on $Es_F $spx $vxx $QQQ http://t.co/UbfLaTXKxY
Scott Jensen
28 Jan 15 20:26:45
HELLO $VIX $VXX $UVXY Nasty Feb ahead....chart: http://t.co/wykpivJLsB
Last, First
28 Jan 15 19:18:01
$VXX $VIX updraft channel in place. Let's play pong @Mella_TA @NorthmanTrader @RiskReversal https://t.co/ubuk1AzXkb http://t.co/pzlhCMtOZM
Stockaholics
28 Jan 15 19:07:16
Our Penny Stock Picks On $IJJP $TUNG & $QLTS Gained 117% In 3 Days! New Pick Coming: http://t.co/c7bXDM1sfp $LODE $VXX $RMKR
OM_giveaways
28 Jan 15 18:39:05
Top 5 Stocks of 2015 Free HD Video!!!! $GOOGL $AAPL $TSLA $SSYS $VXX $VIX $SPY $SPX #stocks http://t.co/vG4ZFnz7JJ http://t.co/X0hbIdamoo
				
				
By  +Follow October 11, 2013 8:11AM
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