Why VXX Is Not a Good Short-Term or Long-Term Play

http://vixandmore.blogspot.com/2009/10/why-vxx-is-not-good-short-term-or-long.html

Today, for instance, the VIX closed at 28.27 and VXX closed at 52.35. Back on June 9th, the VIX also closed at 28.28, yet on that day VXX closed at 74.26. That 29.5% drop in VXX while the VIX held steady is largely the result of negative roll yield – and is evidence that VXX is usually not viable as a long-term holding.

 

For those whose financial vocabulary is limited:
http://en.wikipedia.org/wiki/Roll_yield

 

If your going to trade volitility, go the options route IMO.

 

when you guess it would be a bad long investment . Why not just shorting it ?

 

Trade options on VIX. Buy deep ITM calls as proxy for going long on VIX. Similarly with DITM puts if you want to short...