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CFD Trading Finance Markets VIX (VXX) index

How to Trade VIX Futures

Investors cannot buy or sell the VIX itself: they can only trade instruments that track the index. There are several options available for trading on the “ fear gauge”.

Two of these options are the iPath S&P 500 VIX Short-Term Futures ETN (VXX) and the iPath S&P 500 VIX Mid-Term Futures ETN (VXZ).

iPath S&P 500 VIX Short Term Futures Contracts ETN (VXX)

One of the most straightforward ways to do this is by trading the iPath S&P 500 VIX Short-Term Future ETN (VXX). This product offers volatility risk that has a really impressive average volume of around 36.7 million stocks per day.

Investors are exposed to a rolling long position each day on the first and second-month futures contracts of the VIX. Thus, when market uncertainty and volatility increase, the value of the VIX increases.

iPath S&P 500 VIX Mittelfristige Futures ETN (VXZ)

The iPath S&P 500 VIX Mid-Term Futures ETN (VXZ) tracks the S&P 500 VIX Medium-Term Futures Total Return Index.VXZ has taken long positions in VIX futures for the fourth, fifth, sixth and seventh months, traded on the Chicago Mercantile Exchange.

Additionally, the futures on shorter-dated contracts are continuously rolled over to long-dated contracts throughout the month.

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Finance Markets S&P 500 VIX (VXX) index

The CBOE VIX Volatility Index Rose on Thursday following the FOMC policy decision.

The CBOE VIX (VXX) rose sharply on Thursday, as stocks sold off in the wake of the Fed’s policy decision.

The Chicago Board Options Exchange VIX (VXX), known as the fear index, reached an intraday low of 28.92 on a scale of 1-100 where 20 represents the traditional average. It would finally settle up 2.9% at 26.80.

In stocks markets, the large-cap S&P 500 Index (SPY) sank 0.8% on Thursday.

iPath S&P 500 VIX Short Term Futures ETN: (NYSEARCA: VXX) Designed to offer exposure to the S&P 500 VIX Short Term Futures Index Total Return. The Index uses CBOE Volatility Index futures by way of a long position in the first and second-month VIX Futures contracts. VXX decreased by 2.3%.

ProShares Short VIX Short-Term Futures (SVXY) to track the inverse daily performance of the S&P 500 VIX Short Term Futures Index. SVXY advanced by 1%.

ProShares UltraShort Term VIX Futures: (UVXY) UVXY delivers 1.5X (leveraged) returns of the day’s volatility in the S&P 500 VIX Short Term Futures Index. It attaches the two front months of the futures contract. UVXY dipped by 3.2%.

Investors continue to eye the global spread of COVID-19. As of Wednesday, almost 30 million people infected with COVID-19, including 6.6 million in the United States.

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Finance Markets S&P 500 VIX (VXX) index

Stocks finished higher on Tuesday as attention shifts to monetary policy.

The Dow and broader U.S. stock market continued higher on Tuesday, as investors awaited a dovish policy statement from the Federal Reserve on Wednesday.

Two of Wall Street’s major indices finished in positive territory, with the Dow Jones Industrial Average (DIA) the lone laggard. The benchmark flat-lined at 27,994.42.

The broad S&P 500 Index (SPY) of large-cap stocks gained 0.5% to close at 3,401.11. Eight of 11 primary sectors reported gains, with communication services leading the pack. Shares of information technology and discretionary companies also rose sharply.

Meanwhile, the technology-focused Nasdaq Composite Index (QQQ) climbed 1.2% to settle at 11,190.32.

An instrument implied volatility known as the CBOE VIX (VXX) edged slightly lower on Tuesday but continued to trade above the historical average. The so-called “investor fear index” bottomed at 24.92 before recovering at 25.80.

Members of the Federal Open Market Committee (FOMC) kicked off their two-day policy meeting on Tuesday, with an official interest-rate decision scheduled for Wednesday afternoon. The FOMC is likely to reinforce its dovish stance on monetary policy after Jerome Powell indicated last month that inflation would be allowed to overshoot its 2% target.

Stocks finished higher on Tuesday as attention shifts to monetary policy.
The Dow and broader U.S. stock market continued higher on Tuesday, as investors awaited a dovish policy statement from the Federal Reserve on Wednesday.

Two of Wall Street’s major indices finished in positive territory, with the Dow Jones Industrial Average (DIA) the lone laggard. The benchmark flat-lined at 27,994.42.

The broad S&P 500 Index (SPY) of large-cap stocks gained 0.5% to close at 3,401.11. Eight of 11 primary sectors reported gains, with communication services leading the pack. Shares of information technology and discretionary companies also rose sharply.

Meanwhile, the technology-focused Nasdaq Composite Index (QQQ) climbed 1.2% to settle at 11,190.32.

A form of implied volatility known as the CBOE VIX (VXX) edged slightly lower on Tuesday but continued to trade above the historical average. The so-called “investor fear index” bottomed at 24.92 before recovering at 25.80.

Members of the Federal Open Market Committee (FOMC) kicked off their two-day policy meeting on Tuesday, with an official interest-rate decision scheduled for Wednesday afternoon. The FOMC is likely to reinforce its dovish stance on monetary policy after Jerome Powell indicated last month that inflation would be allowed to overshoot its 2% target.

The Fed’s official policy statement will be in conjunction with a quarterly summary of economic projections and inflation forecasts.

In economic data, U.S. industrial production rose 0.4% in August, the Federal Reserve reported Tuesday. Capacity utilization increased to 71.%, official data showed.

The Final Word: Experts expect The Fed to keep interest rates at record lows until 2023, according to a survey of economists by CNBC. The highly accommodative landscape could provide more fuel to the equities rally despite overvaluation risks.

In economic data, U.S. industrial production rose 0.4% in August, the Federal Reserve reported Tuesday. Capacity utilization increased to 71.%, official data showed.

The Final Word: The Fed plans to keep interest rates at record lows until 2023, according to a recent survey of economists by CNBC. The highly accommodative landscape could provide more fuel to the equities rally despite overvaluation risks.

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Finance Markets VIX (VXX) index

The CBOE VIX Volatility Index (VXX) slightly declined on Tuesday.

The CBOE VIX (VXX) drifted slightly lower on Tuesday, as equities rallied in the shadow of the FOMC’s next policy decision.

The CBOE Volatility Index touched an intraday low of 24..92 on a scale of 1-100 where 20 represents the historical average. It settled down 0.2% at 25.80.

In stocks, the large-cap S&P 500 Index (SPY) rose 0.5% on Tuesday.

iPath S&P 500 VIX Short Term Futures ETN: (NYSEARCA: VXX) Designed to offer exposure to the S&P 500 VIX Short Term Futures Index Total Return. The Index uses CBOE Volatility Index futures by way of a long position in the first and second-month VIX Futures contracts. VXX declined 0.1%.

ProShares Short VIX Short-Term Futures (SVXY) to track the inverse daily performance of the S&P 500 VIX Short Term Futures Index. SVXY flat-lined.

ProShares UltraShort Term VIX Futures: (UVXY) UVXY composed to deliver 1.5X (leveraged) returns of the day’s changes in the S&P 500 VIX Short Term Futures Index. It tracks the last two months of the futures contract. UVXY declined by 0.1%.

The Final Word:
Investors continue to track the global spread of COVID-19. As of Monday, more than 29.3 million people infected with the new disease, including 6.5 million in the United States.