No, the price is the price… it’s only when you buy options do you experience time decay. But, any of the 2x and 3x etf’s can and do lose value over time when compared to the etf they track.
However, it’s not severe… like options are. But over weeks and months you could lose more in those then the underlining “one time” etf that it follows.
Just a quick question on the VXX ETF: I have read the blurb about it, but perhaps someone can cut through the lawyer-speak for me.
If I hold the VXX for more than a few days, do I end up with problems with it being time-sensitive? IE, if the VIX moves up and down a few points and basically ends up where it started, will my ETF reduce in value. and if so, is it much?
Yes, they could sell it off first. I don’t know what they have planned for tomorrow? However, a failed bull flag is very bearish and should cause the market to sell off quite a bit if that happens.
It will take many people by surprise I’m sure. So why not start the crash tomorrow… I’d be happy with that, as I’m already short.
I went long last week with a call spread play. It made a little profit, but I just prefer to go short as the vix then goes in my favor. I’ve went long other stuff too, like oil for one.
But right now I’d rather just sit out the rallies and wait for the sell offs… even if they are only “one day wonders”, as they are still more profitable then going long (at least for me).
Based on the conflicting prints, it looks like they might take it down first, then have a blow-off top in the next few days before taking it down…but it’s anyone’s interpretation…
One of my market direction indicators say the DOW down 340 in a rather quick time frame. any day now or mid feb
man that’s beautiful!, thanks P.K.—
Nice.
No, the price is the price… it’s only when you buy options do you experience time decay. But, any of the 2x and 3x etf’s can and do lose value over time when compared to the etf they track.
However, it’s not severe… like options are. But over weeks and months you could lose more in those then the underlining “one time” etf that it follows.
Does buying the VXX count as going long?!
Just a quick question on the VXX ETF: I have read the blurb about it, but perhaps someone can cut through the lawyer-speak for me.
If I hold the VXX for more than a few days, do I end up with problems with it being time-sensitive? IE, if the VIX moves up and down a few points and basically ends up where it started, will my ETF reduce in value. and if so, is it much?
Thanks.
Jed
Yes, they could sell it off first. I don’t know what they have planned for tomorrow? However, a failed bull flag is very bearish and should cause the market to sell off quite a bit if that happens.
It will take many people by surprise I’m sure. So why not start the crash tomorrow… I’d be happy with that, as I’m already short.
I went long last week with a call spread play. It made a little profit, but I just prefer to go short as the vix then goes in my favor. I’ve went long other stuff too, like oil for one.
But right now I’d rather just sit out the rallies and wait for the sell offs… even if they are only “one day wonders”, as they are still more profitable then going long (at least for me).
Based on the conflicting prints, it looks like they might take it down first, then have a blow-off top in the next few days before taking it down…but it’s anyone’s interpretation…
Red, When was the last time you went long a position?
New FP on the USD (thanks for emailing it too me P.K.)
http://reddragonleo.com/wp-content/uploads/fp-usd-showing-82-50-area-on-02-02-2011.png