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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
Stock Forums
24 Oct 14 01:14:34
$UNGS Financials Click Here: http://t.co/ZVOYiLLMgA Also See: $VXX $GE $ZAZA $XOM ~
Hariharan Vaidyanath
23 Oct 14 23:42:05
RT @Taarriqq: $Tza $vxx $v quick day trade alerts going above 40-50%
Investors Hangout
23 Oct 14 23:40:17
$SEGI Stock Message Board Click Here: http://t.co/efeF0sLGGB Also See: $PANW $VXX $SWRF $ZAZA ~
Tony Trade Boss
23 Oct 14 23:24:58
$VXX $SPY who cares if markets go up or down. Stay calm and let the trend be your friend $AAPL $MSFT $GOOG
Stock Forums
23 Oct 14 22:46:44
$ONE E.P.S. Click Here: http://t.co/LFaPIUvovn Also See: $VHT $HESG $VXX $ERY ~
Hereitfirst
23 Oct 14 21:27:45
how to trade $SPY $AMZN $LAKE $NLNK $MSFT $VXX $UGAZ $P $UVXY $UNG $FB $INO $JAKK http://t.co/uTZpFW8a4K
Hedge AccordingLy
23 Oct 14 21:27:12
$VXX “@jennablan: U.S. stock futures tumble on reports of Ebola case in NY http://t.co/fT8JDVoaOa”
OptionsGenius
23 Oct 14 21:00:44
Sasi knows how market goes about.our outlook on markets is unique. $SPY $QQQ $VIX $VXX $UVXY. http://t.co/1mgipWor2a Utilize the spots now
biostock
23 Oct 14 20:16:19
I said trading characteristic of $VXX has changed This reminds me 2008 where yoyo action was a daily norm. Ebola is just an excuse.
Investors Hangout
23 Oct 14 20:11:00
$HEMP Bid Click Here: http://t.co/eer6YtTqd3 Also See: $VXX $FVI.TO $ZSL $HAL ~
TV_Trading Ideas
23 Oct 14 20:08:14
TRACKING VXX / VIX $VXX http://t.co/9BibHT3vET
ⓢ
23 Oct 14 19:56:38
$VXX http://t.co/gewdTQVQJk
Annie
23 Oct 14 19:51:50
Market up against resistance so pull-back healthy; no ebola panic warranted. Might be rough going into wknd w/unknowns, tho $SPY $QQQ $VXX
thelidlives
23 Oct 14 19:46:58
Dumped Vicky aka $vxx about 30min before this numb nuts Dr. went all Ebola on NYC. Irresponsible fucker cost me $.
Greg Rieben
23 Oct 14 19:41:47
Ebola back in the headlines. http://t.co/VVyAsstgCN Volatility will be back. $VIX $VXX $TVIX #trading #investing #stocks
PK
23 Oct 14 19:34:38
$SPY The comments on $VXX r hopeless..even the Dr's friends /fiance doing fine....but u can dream of a red day - thats ok :)
Joshua Sanchez
23 Oct 14 19:14:31
$SPY $QQQ $VXX No matter how you look at it New Yorkers are going to work tomorrow very nervous.
thelidlives
23 Oct 14 19:05:43
NYC Dr. Should be considered a terrorist. Moron probably long $vxx,$lake,$apt.
steven spencer
23 Oct 14 18:46:49
Expanding Volatility– $SPY $VXX | SMB Capital - Trading Education http://t.co/Ocg1UIpCRO
The American
23 Oct 14 18:39:03
Doctor Tests Positive For Ebola NYC http://t.co/oao9McW46D $LAKE $NLNK $APT $IBIO $AHPI $SRPT $BCRX $VSR $TKMR $NNVC $CMRX $PSID $VXX $UVXY
Joshua Sanchez
23 Oct 14 18:36:34
$ES_F $SPY $QQQ $VXX $QID Watch futures after the news conference.
Joshua Sanchez
23 Oct 14 18:34:08
$AAPL $FB $YHOO $BBRY $VXX $RSH $IBM $CMG $QQQ $SPY Go to http://t.co/xpMsaJTGMf for the live news conference on Ebola in NYC.
Becky Hiu
23 Oct 14 18:25:57
Commented on StockTwits: That odd $vxx strength I noticed all day is paying off http://t.co/15helm9dsK
naomihn2000
23 Oct 14 18:05:14
i am going to laugh to the bank tomorrow if market tanks $SPX $SPY and $VXX goes north. $BTU short.
TraderMK
23 Oct 14 18:04:34
$VXX will be buying more puts on the spike. Next month, this will be all forgotten.
naomihn2000
23 Oct 14 18:04:14
the night is long so $SPX $SPY futures will change by 9:30AM however there is no crack tomorrow. lets see if $VXX spike tomorrow.
Bobby Shea
23 Oct 14 18:01:40
So the Ebola trade is back on? Please bid $VXX back up to $40. Pretty please?
Annie
23 Oct 14 17:49:40
Added some $VXX & $TKMR after the bell... small swings around core position to remove some of the inherent risks in these small-cap bios
Sam Cooper
23 Oct 14 17:45:58
RT @HedgeLy: $VXX “@WSJbreakingnews: New York patient tests positive for Ebola, official familiar with findings says http://t.co/W82gUkRtKu”
Hedge AccordingLy
23 Oct 14 17:40:02
$VXX “@WSJbreakingnews: New York patient tests positive for Ebola, official familiar with findings says http://t.co/W82gUkRtKu”
StockTweets
23 Oct 14 17:37:21
$fas $uvxy $vxx $vix @MarketWatch @Benzinga @schaeffers @stocktwits check myfeed for guaging the markets.Spot on with indices
OptionsGenius
23 Oct 14 17:36:43
$fas $uvxy $vxx $vix @MarketWatch @Benzinga @schaeffers @stocktwits check myfeed for guaging the markets.Spot on with indices
naomihn2000
23 Oct 14 17:18:09
i was losing hope on the $VXX. i am amazed it closed at $33.48..i am up but barely :-) $SPY SHORT, i'll live.
Roger
23 Oct 14 16:51:07
RT @etfguide: If you're not yet subscribed to @etfguide's YouTube channel, here's what you've been missing: http://t.co/FU7Vuk3C1v $IVV $E…
ETFguide.com
23 Oct 14 16:51:06
If you're not yet subscribed to @etfguide's YouTube channel, here's what you've been missing: http://t.co/FU7Vuk3C1v $IVV $EFA $VXX $IWM
Anacott Steel
23 Oct 14 16:23:54
Seriously, do you think you have the speed or, better said, emotional fortitude, to trade $VIX vehicles ie $VXX etc. --> don't, they lose...
Carolyn B Miciano
23 Oct 14 15:01:53
Methodical way to trade weeklies http://t.co/MMkkKwho9T $VIX $VXX $OEX
Carolyn B Miciano
23 Oct 14 14:42:40
Key to understanding Risk graphs http://t.co/e9UDURwuRx $VIX $VXX $OEX
Langan Stocks
23 Oct 14 14:27:14
$HK Day Low Click Here: http://t.co/MVBdOxNzyM Also See: $BMY $JCP $VXX $CTIX ~
Steven
23 Oct 14 13:51:38
@VixCentral why does $vxx & $uvxy seem to get crushed after the bell?
Eternity101
23 Oct 14 13:33:13
RT @VixCentral: $VIX futures contango settled at exactly 0% (yes it happens). There are no contango costs associated with holding $VXX and …
Eli Mintz
23 Oct 14 13:27:43
$VIX futures contango settled at exactly 0% (yes it happens). There are no contango costs associated with holding $VXX and $UVXY long term
Mark Sebastian
23 Oct 14 13:11:47
Is Next Week's SPX Straddle Too Cheap | Option Pit http://t.co/FUrDthr6kG $vix $spx $vxx
naomihn2000
23 Oct 14 13:02:54
$VXX is not working now but will hold. there is no crack tomorrow $SPY $SPX
StockSetups
23 Oct 14 13:02:16
$VXX chart: Taking some VIX over the weekend again. Small Shares Today.. http://t.co/cA3WMtps6h
TV_Trading Ideas
23 Oct 14 13:02:16
Taking some VIX over the weekend again. Small Shares Today. $VXX http://t.co/9UyBQ2mHUA
Thu Real Matt
23 Oct 14 12:45:22
"@5N1PE: $VXX looks tasty long here $VIX" I should have said short =D
AJP
23 Oct 14 12:40:02
RT @etfguide: Psst...Volatility is still outperforming the S&P 500 http://t.co/a7OcPDV1pw $VOO $UVXY $VXX
Andy
23 Oct 14 12:35:16
RT @etfguide: Psst...Volatility is still outperforming the S&P 500 http://t.co/a7OcPDV1pw $VOO $UVXY $VXX
ETFguide.com
23 Oct 14 12:35:10
Psst...Volatility is still outperforming the S&P 500 http://t.co/a7OcPDV1pw $VOO $UVXY $VXX
				
				
By  +Follow October 11, 2013 8:11AM
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