Vixy reaching new lows, time to buy?

Discussion in 'Trading' started by IronFist, Feb 14, 2021.

  1. maxinger

    maxinger

    Peak was 12800 ( ie 5 digits) @ Oct 2011.
    Now it is just 2 digits.
     
    #11     Feb 15, 2021
  2. S2007S

    S2007S



    Reverse splits and decay due to fed induced bull market.
     
    #12     Feb 15, 2021
  3. KCalhoun

    KCalhoun

    Great points.. I'm looking for VIX to reverse back up soon. Curious, why not trade UVXY?
     
    #13     Feb 15, 2021
  4. Sig

    Sig

    Or better yet just invest in VIX futures directly. Unless you're really wedded to the equal tenor exposure of the ETFs they don't appear to have any benefits over directly investing in the two underlying securities they each invest in.
     
    #14     Feb 15, 2021
    KCalhoun likes this.
  5. Snuskpelle

    Snuskpelle

    Remember it's the percentage increases/decreases on swings that count for traders (including daytraders) since you will rescale the position based on the most recent price. In terms of percentages the VIX complex is as volatile as it ever was (actually vol of vol has been going higher the last year AFAIK, though I haven't bothered personally checking as I didn't trade vol by ETF since 2017).

    I wouldn't go long VIXY, UVXY, etc. in a discretionary trade even with a gun pointed to my head though. Short equity index is much more straightforward, you need really specialist knowledge to do well long volatility (or do some really short term holds).
     
    Last edited: Feb 15, 2021
    #15     Feb 15, 2021
    KCalhoun likes this.
  6. SunTrader

    SunTrader

    Today's VIX is not the same as the 2011 VIX. CBOE changed calculation twice (2003, and 2014) since its origin.

    But exactly how does someone trade VIX spot? I've never heard of a way.
     
    #16     Feb 15, 2021
  7. Sig

    Sig

    You can't trade VIX spot. You can directly trade VIX futures and FOPs though. The VIX ETFs consist of the nearest two months of VIX futures, they just roll out of the near to the far every day to maintain an equal duration exposure.
     
    #17     Feb 15, 2021
  8. Did not know there was UVXY.
     
    #18     Feb 15, 2021
  9. Can VIXY go to zero or do they just keep reverse splitting it?
     
    #19     Feb 15, 2021
  10. Just seems like it keeps going down forever with the sporadic spike.
     
    #20     Feb 15, 2021