Pending merger involving VXX?

Discussion in 'Options' started by StockSlacker, Dec 23, 2018.

  1. I got a message from my broker regarding a pending merger involving the VXX effective Jan 30, 2019. I tried searching for this news online but couldn't find anything.

    Does anyone know what is going on here? Also, the VXX option chains beyond Jan don't seem to exist?!?!
     
  2. Overnight

    Overnight

    stepandfetchit likes this.
  3. Thank you for the link. I have a short position on the VXX. What will happen after Jan 30? Will it be transferred to the VXXB?
     
  4. I'd suggest you locate that detail in the VXX prospectus before you run short of time! --
    I would NOT assume that to be the case, but I have not studied the prospectus for that case!
     
  5. JSOP

    JSOP

    VXX is an ETN which stands for Electronically Traded Notes. It's actually a debt instrument, NOT a stock and just like any debt instruments like bonds, Treasury Notes, it has a maturity date. It matures on Jan. 30, 2019. Here is its prospectus:

    http://www.ipathetn.com/US/16/en/documentation.app?instrumentId=259118&documentId=6204338

    Barclays, its issuer, has already issued a replacing "Series B" ETN called VXXB which will take over when VXX matures. Its option has already started trading long time ago.
     
    gkishot likes this.