Learn the trade here. Make it on tradeMONSTER

Options Trading News

November 12, 2013  Tue 3:16 AM CT

VXX: SEE CHART GET CHAIN FIND STRATEGIES
The iPath S&P 500 VIX Short-Term Futures Note has been hitting all-time lows recently, but traders apparently believe that further downside will be limited.

A block of 9,300 November 46 puts was sold for the bid price of $0.28 yesterday, according to optionMONSTER systems. Earlier in the morning, 2,200 December 44.50 puts were sold for $0.47. There was no previous open interest at either strike, so these are new positions.

The put selling is setting floors of $46 and $44.50 for the VXX and are therefore betting that volatility will pick up. (See our Education section)

The VXX finished the day at $48.52, yet another new closing low. The fund is composed of the nearest two months of VIX futures, and because of that structure it consistently will trend toward zero. It has had three reverse splits since its inception in early 2009 at $6,400.
Share this article with your friends


Related Stories

VXX

Midday index, ETF option volumes

July 29, 2014

Total option volume is very light at 4.3 million so far today, with mixed action in the top indexes and ETFs, according to optionMONSTER data systems.

VXX

Midday index, ETF option volumes

July 28, 2014

Total option volume is running a bit light at 5.1 million so far today, led by the typical indexes and ETFs, optionMONSTER data systems show.

VXX

Midday index, ETF option volumes

July 25, 2014

Total option volume is back to average at 5.3 million contracts so far today, with the primary indexes and ETFs topping the action, according to optionMONSTER data systems.

VXX

Midday index, ETF option volumes

July 24, 2014

Total option volume is running about average at 5.3 million so far today, with mixed action in the big indexes and ETFs, according to optionMONSTER data systems.

VXX

Midday index, ETF option volumes

July 23, 2014

Total option volume is a bit above average at 5.9 million so far today, with relatively light action in the primary indexes and ETFs, optionMONSTER data systems show.

Premium Services

Free Webinars

Education & Strategy

Why traders hedge with sector ETFs

Many people who are not familiar with options think that they increase risk, but their first and primary purpose is...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER