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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
Mark Mansfield
31 Oct 14 12:04:36
RT @TradingTheOdds: VRP STRATEGY on Fri., 10/31/2014 (preliminary estimate): Long $XIV closed out, switch to long $VXX (market-on-close). h…
Mark Mansfield
31 Oct 14 12:04:29
RT @JFinDallas: Dumped all $XIV today and now closed the short $VXX Nov $50 calls sold for $4.60 covered for $0.16, done with the vol trade…
Mark Mansfield
31 Oct 14 12:03:31
RT @CBOE: Active calls @ CBOE: $SPY 12/20/14 206 $EBAY 11/28/14 53 $VXX 12/20/14 42 $OIH 12/5/14 47.50 $AAPL 1/17/15 105
PostingMyTrades
31 Oct 14 11:47:17
BTC 10 $VXX Oct31 31 P @ 0.71 -$410 STO 10 $VXX Nov7 30 P @ 0.81 Rolling to next week
Forex Update
31 Oct 14 11:46:10
RT @CBOE: Active calls @ CBOE: $SPY 12/20/14 206 $EBAY 11/28/14 53 $VXX 12/20/14 42 $OIH 12/5/14 47.50 $AAPL 1/17/15 105
Kenneth Roberts
31 Oct 14 11:44:02
RT @CBOE: Active calls @ CBOE: $SPY 12/20/14 206 $EBAY 11/28/14 53 $VXX 12/20/14 42 $OIH 12/5/14 47.50 $AAPL 1/17/15 105
Quantpost Cnsmr Good
31 Oct 14 11:42:55
$AAPL News: "Active calls @ CBOE: $SPY 12/20/14 206 $EBAY 11/28/14 53 $VXX …" https://t.co/GGwIwavco5 Board view: https://t.co/UKnOp0aS6J
Quantpost Service
31 Oct 14 11:42:55
$EBAY News: "Active calls @ CBOE: $SPY 12/20/14 206 $EBAY 11/28/14 53 $VXX …" https://t.co/iJles0CGiL Board view: https://t.co/2WYMm6I5Ol
CBOE
31 Oct 14 11:42:54
Active calls @ CBOE: $SPY 12/20/14 206 $EBAY 11/28/14 53 $VXX 12/20/14 42 $OIH 12/5/14 47.50 $AAPL 1/17/15 105
lookn4wins
31 Oct 14 11:22:49
$INFN 52Wk Low Click Here: http://t.co/EPYRNBMGlC Also See: $DECK $MOBL $VXX $RWLK ~
Robin Feenstra
31 Oct 14 11:22:31
Come on $VXX, I want my puts be sold under $30.
Becky Hiu
31 Oct 14 11:14:26
When will $VXX break 30?
Luis Alfredo
31 Oct 14 11:11:51
Cuidado!! @acardenasfx RT @piesdeplomo74: El #VIX ha convertido mi vida en un infierno. http://t.co/6YNj7dLHeW" Voy con Algo de $VXX
Andy Lewis
31 Oct 14 10:57:20
Added some $VXX protection
Jean Fonteneau
31 Oct 14 10:29:15
Dumped all $XIV today and now closed the short $VXX Nov $50 calls sold for $4.60 covered for $0.16, done with the vol trade for now.
TRADING THE ODDS
31 Oct 14 10:17:37
VRP STRATEGY on Fri., 10/31/2014 (preliminary estimate): Long $XIV closed out, switch to long $VXX (market-on-close). http://t.co/VaqWnlyIvf
Zolio
31 Oct 14 10:06:23
$SPY $VXX $VIX Massive bullish run on surprise QE from Japan; early morning fade reversing as we go into lunch.
chartguy89
31 Oct 14 10:04:23
VXX Stock Chart $VXX $AMBA $DIS $TAN http://t.co/1UV0vXUv2T http://t.co/iQkvRYYBzP
Market Int Center
31 Oct 14 09:58:48
Ipath VIX Short-Term Futures ETN $VXX Showing Bullish Technicals With Resistance At $32.93 ( http://t.co/JpnVk3RvWx )
Stockaholics
31 Oct 14 09:57:34
Our Penny Stock Newsletter Alert On MGON Closed up 112.5% Today! Major News: http://t.co/dvxYQnSJab $LODE $VXX $RMKR
Carolyn B Miciano
31 Oct 14 09:51:31
Understanding Options data and quotes http://t.co/7M7lonzyO3 $VIX $VXX $OEX
Dawn Rinaldi
31 Oct 14 09:20:11
$VXX $VIX so VXX DOWN 1.7% and VIX UP 1.7%...WTF? option friday...
Trading Cards
31 Oct 14 09:10:51
I recommend you to watch Alan Greenspan`s recent interview over the weekend. His thoughts on the Fed`s exit are very interesting. $SPY $VXX
chartguy89
31 Oct 14 09:01:03
ALXN Stock Chart $ALXN $VXX $EWJ $SO http://t.co/1UV0vXUv2T http://t.co/IMe74w1k5L
IH News Desk
31 Oct 14 08:53:53
$GOOGL % Change Click Here: http://t.co/pdfxbKijB0 Also See: $CELG $SFRX $VXX $BMRN ~
Mark Mansfield
31 Oct 14 08:50:10
RT @5N1PE: $VIX holding steady tells me folks still aren't believing in this $SPX move. Still need skeptics to be washed out before a top $…
Thu Real Matt
31 Oct 14 08:45:48
$VIX holding steady tells me folks still aren't believing in this $SPX move. Still need skeptics to be washed out before a top $SPY $VXX
Syd Weedon
31 Oct 14 08:43:24
RT @CBOE: Active calls @ CBOE; $AAPL 10/31/14 107, 108 Jan 105 & Jan 110 $VXX Dec 42
Annie
31 Oct 14 08:40:01
@bjj15843 So Oil going down again, $CVX up, $HAL up, $GILD and $VXX down...
CBOE
31 Oct 14 08:38:53
Active calls @ CBOE; $AAPL 10/31/14 107, 108 Jan 105 & Jan 110 $VXX Dec 42
Leilani Pips
31 Oct 14 08:34:22
RT @Eternity_Trader: When someone says, "time to go short," in my presence, I punch them. $SPY $SPX $VXX $VIX $QQQ
$GSCT
31 Oct 14 08:30:04
RT @Eternity_Trader: When someone says, "time to go short," in my presence, I punch them. $SPY $SPX $VXX $VIX $QQQ
ETFMarketsMuse
31 Oct 14 08:27:19
RT @rareviewmacro: Upside #gamma between call option strikes: $SPY 197-211 = 12.1 bln & $SPX 1975-2075 = 18.4 bln. Dealers offsides by ~30…
leahanne
31 Oct 14 08:20:02
$SVL.TO Silvercrest Mines Inc (SVL.TO) 1.42 -0.08 (-5.33%) $VXX $TZA $UUP http://t.co/Q758ijgH8Q
Arvind
31 Oct 14 08:15:55
$VXX Fear is still around but as long as market holds this level fear will subside. Monday and Tuesday needs to hold and not reverse. Vxx 26
BrutusMaximus
31 Oct 14 08:15:07
$VXX : short covered weekly 34c will expire worthless today... no action needed - rollover into next week
GHOST
31 Oct 14 08:15:05
and to think people thought i was crazy for calling new ATH's in 4-6 weeks….3 weeks ago. 210+ coming $spy $vxx $iwm $aapl $googl $fb $grpo
lookn4wins
31 Oct 14 08:09:22
$GMCR Quotes Click Here: http://t.co/rVeKDlTzKH Also See: $FL $VXX $MMM $IG ~
Stock Relay
31 Oct 14 08:03:35
$GS Current Price Click Here: http://t.co/yeKWkbWKY6 Also See: $GE $VXX $JNK $Z ~
Joshua Miller
31 Oct 14 07:56:19
My weekly tweeting is done. Enjoy. Time to go back to work. $QQQ $SPY $SPX $VXX
Joshua Miller
31 Oct 14 07:55:07
And to the large majority of you, I hope you enjoy losing money, because most of you never make $$$ $QQQ $SPY $BBRY $SPX $VXX
Joshua Miller
31 Oct 14 07:50:22
A little advice to the shorts, don't be stupid. Their going to run this up into the close and stomp you out. $QQQ $SPY $SPX $VXX $VIX
DailyStockPicks
31 Oct 14 07:46:56
#Ebola revenues for $LAKE announced. $SMED has 4 ways Ebola positively impacts their bottom line: http://t.co/qXqzthBMEE $VXX $FXI $GLD
Joshua Miller
31 Oct 14 07:39:14
The house wins when they can keep the gambler at the table. $QQQ $SPY $SPX $VIX $VXX $FB - Enjoy pigs, lol. watching on the sidelines.
Hedge Fund of One
31 Oct 14 07:38:22
My $VXX 10/31/2014 31-32 bear call spread sold at 0.38 on Wed after FOMC just might work. :-)
Mark Mansfield
31 Oct 14 07:37:36
RT @BillTsamis: $SPY a lot of individual stocks not acting all that great with market up this big ...why is $VXX not down a lot more?
Duke Rexx
31 Oct 14 07:37:30
@dukerexx $VXX $SPY change of plans starting in 1/2 here on SPY 200 puts for next week. Leaving room for the hod break squeeze
Joshua Miller
31 Oct 14 07:35:52
So happy for this jump up in the markets, I am finally able to pull all my money out and enjoy the holidays. $QQQ $VXX $VIX $SPY $SPX
Penny Stock Secret
31 Oct 14 07:30:44
The Hottest Way to Make Millions From Stock Market.Click HERE http://t.co/SVqoMkrw2z .. $LODE $VXX $RMKR
Carolyn B Miciano
31 Oct 14 07:27:06
Deep insights into Credit spreads http://t.co/sObgAxIanU $VIX $VXX $OEX
				
				
By  +Follow October 11, 2013 8:11AM
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