Volatility Hedges are Timely & Cheap Again – Consider the VXX

When I first suggested investors consider volatility hedges last August before the stock market correction, the comment section of the article was full of criticism. I suppose that was understandable, given that the critics didn’t foresee the correction I anticipated. Since last summer’s event, the iPath S&P 500 VIX ST Futures ETN (NYSE: VXX) has mostly traded above where I first recommended it, though I told holders to sell it at a profit since. Volatility hedges like the VXX are indeed ironically risky instruments that are not to be held for the long-term. But today, I once again view them timely and appropriate tools for sophisticated investors to use for portfolio protection. Fortunately, they are also much more affordable than they were just a few weeks ago. See the full report on why you should consider volatility hedges again here.

Volatility Securities

iPath S&P 500 VIX ST Futures ETN (NYSE: VXX)

VelocityShares VIX ST ETN (NYSE: VIIX)

ProShares VIX ST Futures (NYSE: VIXY)

iPath S&P 500 VIX Mid-Term Futures ETN (NYSE: VXZ)

Extra Leverage, Higher Risk

ProShares Ultra VIX ST Futures (NYSE: UVXY)

VelocityShares Daily 2X VIX (NYSE: TVIX)

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only. Article should interest investors in Bank of America (NYSE: BAC), J.P. Morgan Chase (NYSE: JPM), Goldman Sachs (NYSE: GS), Citigroup (NYSE: C), Morgan Stanley (NYSE: MS), Wells Fargo (NYSE: WFC), TD Bank (NYSE: TD), PNC Bank (NYSE: PNC), State Street (NYSE: STT), Janus (NYSE: JNS), T. Rowe Price (Nasdaq: TROW), General Electric (NYSE: GE), Wal-Mart (NYSE: WMT), McDonald's (NYSE: MCD), Alcoa (NYSE: AA), American Express (NYSE: AXP), Boeing (NYSE: BA), Caterpillar (NYSE: CAT), Cisco Systems (Nasdaq: CSCO), Chevron (NYSE: CVX), DuPont (NYSE: DD), Walt Disney (NYSE: DIS), Home Depot (NYSE: HD), Hewlett-Packard (NYSE: HPQ), IBM (NYSE: IBM), Intel (Nasdaq: INTC), Johnson & Johnson (NYSE: JNJ), Kraft (NYSE: KFT), Coca-Cola (NYSE: KO), 3M (NYSE: MMM), Merck (NYSE: MRK), Microsoft (Nasdaq: MSFT), Pfizer (NYSE: PFE), Procter & Gamble (NYSE: PG), AT&T (NYSE: T), Travelers (NYSE: TRV), United Technologies (NYSE: UTX), Verizon (NYSE: VZ), Exxon Mobil (NYSE: XOM), Paychex (Nasdaq: PAYX), Manpower (NYSE: MAN), Robert Half International (NYSE: RHI), 51Job Inc. (Nasdaq: JOBS), Monster World Wide (NYSE: MWW), Korn/Ferry International (NYSE: KFY), Administaff (NYSE: ASF), Kforce (Nasdaq: KFRC), TrueBlue (NYSE: TBI), Dice Holdings (NYSE: DHX), Kelly Services (Nasdaq: KELYA), SFN Group (NYSE: SFN), CDI Corp. (NYSE: CDI), Cross Country Healthcare (Nasdaq: CCRN), On Assignment (Nasdaq: ASGN), AMN Healthcare Services (NYSE: AHS), Barrett Business Services (Nasdaq: BBSI), Hudson Highland Group (Nasdaq: HHGP), StarTek (NYSE: SRT), RCM Technologies (Nasdaq: RCMT), VirtualScopics (Nasdaq: VSCP), General Employment Enterprises (NYSE: JOB) and TeamStaff (Nasdaq: TSTF).

Play Volatility Now - History Shows the Next 3 Months Could be Choppy

When ordering your market pie now, expect to get some extra volatility on that. In periods around a first Fed rate hike the market tends to exhibit higher volatility than normal. During the particular period in play today, I think you can expect even more than that for various reasons discussed herein. As a result, sophisticated investors might make more use of volatility instruments now like the iPath S&P 500 VIX Short-Term Futures ETN (NYSE: VXX). Please note that the VXX is for sophisticated investors who understand its inherent risk. The VXX may be useful as a short-term hedging instrument, but its historical performance shows its inherent tendency to shed value over the long-term. See more of this report on how to play volatility now.

DISCLOSURE: Kaminis is currently short VXX, but may go long over the next 72 hours. Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only. Editor's Note: Article should interest investors in Bank of America (NYSE: BAC), Freddie Mac (OTC: FMCC.OB), Fannie Mae (OTC: FNMA.OB), Goldman Sachs (NYSE: GS), Morgan Stanley (NYSE: MS), Wells Fargo (NYSE: WFC), Toronto Dominion (NYSE: TD), BB&T (NYSE: BBT), CIT (NYSE: CIT), Bank United (NYSE: BKU), First Citizens (OTC: FCNCA.PK), Synovus (NYSE: SNV), United Bankshares (Nasdaq: UBSI), Hampton Roads Bankshares (Nasdaq: HMPR), WesBanco (Nasdaq: WSBC), City Holding (Nasdaq: CHCO), Sandy Spring (Nasdaq: SASR), First Citizens (OTC: FCBN.OB), SCBT Financial (Nasdaq: SCBT), Wilmington Trust (NYSE: WL), WSFS Financial (Nasdaq: WSFS), Southside Bancshares (Nasdaq: SBSI), Stellar One (Nasdaq: STEL), Union First Market (Nasdaq: UBSH), Eagle Bancorp (Nasdaq: EGBN), First Bancorp (Nasdaq: FBNC), Ameris (Nasdaq: ABCB), The Bancorp (Nasdaq: TBBK), First Community (Nasdaq: FCBC), Capital City (Nasdaq: CCBG), Financial Institutions (Nasdaq: FISI), National Bankshares (Nasdaq: NKSH), Citizens & Northern (Nasdaq: CZNC), Charter Financial (Nasdaq: CHFN), Seacoast Banking (Nasdaq: SBCF), TIB Financial (Nasdaq: TIBB), American National (Nasdaq: AMNB), United Community (Nasdaq: UCBI), Middleburg Financial (Nasdaq: MBRG), Heritage Financial (Nasdaq: HBOS), Zions Bancorp (Nasdaq: ZION), East West Bancorp (Nasdaq: EWBC), City National (NYSE: CYN), Bank of Hawaii (NYSE: BOH), SVB Financial (Nasdaq: SIVB), Westamerica (Nasdaq: WABC), Cathay General (Nasdaq: CATY), Umpqua (Nasdaq: UMPQ), Glacier Bancorp (Nasdaq: GBCI), Pacific Capital (Nasdaq: PCBC), PacWest (Nasdaq: PACW), Western Alliance (NYSE: WAL), First National Alaska (OTC: FBAK.OB), First Interstate Bancsystem (Nasdaq: FIBK), Nara (Nasdaq: NARA), West Coast (Nasdaq: WCBO), TriCo (Nasdaq: TCBK), Territorial (Nasdaq: TBNK), Washington Banking (Nasdaq: WCBO), Bank of Marin (Nasdaq: BMRC), Hanmi (Nasdaq: HAFC), PNC Bank (NYSE: PNC), J.P. Morgan Chase (NYSE: JPM), United Bankshares (Nasdaq: UBSI), Bank of New York Mellon (NYSE: BK), MB Financial (Nasdaq: MBFI), Astoria Financial (NYSE: AF), New York Community (NYSE: NYB), Hudson City (Nasdaq: HCBK), People’s United (Nasdaq: PBCT), First Niagra (Nasdaq: FNFG), Capitol Federal (Nasdaq: CFFN), Washington Federal (Nasdaq: WFSL), Investor’s Bancorp (Nasdaq: ISBC), Northwest Bankshares (Nasdaq: NWBI), Sterling Financial (Nasdaq: STSA), Ocwen (NYSE: OCN), Flagstar (NYSE: FBC), Provident (NYSE: PFS), Colombia Banking (Nasdaq: COLB), Kearny (Nasdaq: KRNY), Brookline (Nasdaq: BRKL), Dime Community (Nasdaq: DCOM), Flushing Financial (Nasdaq: FFIC), Danvers (Nasdaq: DNBK).

We Recommended VXX at $16 Pre-Correction & it Rose 97% in 2 Weeks

In the first half of August before the market correction I vehemently warned investors to: raise cash levels; avoid the temptation to purchase dips in the market; and to buy the iPath S&P 500 ST Futures ETN (NYSE: VXX) at approximately $16. The stock market corrected shortly after my recommendation, with the investors in the VXX having a best case gain measuring 97% if sold at $31.48 intraday on September 1st. I closed my initial VXX long position (call options) during the correction in August at a significant profit. As I produced this report, the VXX security traded at approximately $24 and still offered a 50% profit to early stakeholders who might still be holding the security. Given the greater likelihood of Fed inaction versus the probability of action this week, and as I anticipate a higher likelihood of a market rise on such news than the possibility of decline, I’m suggesting investors still holding the VXX sell the security and take profits now if they have not already done so. The VXX should fall swiftly in the event of a change in market sentiment to the positive. If you would like to keep some hedge in place due to an expectation for a Fed surprise, I suggest doing so with a much smaller stake and still recommend taking your cost and a good deal of your profits out of the VXX now if you have not already done so. See the full report on the VXX security here. In case you missed it, I predicted the market correction. 

Article also interests investors in ProShares Ultra VIX ST Futures (NYSE: UVXY), VelocityShares Daily 2X VIX (NYSE: TVIX), VelocityShares Daily Inverse VIX ST (NYSE: XIV), VelocityShares Daily Inverse VIX MT (NYSE: ZIV), PowerShares QQQ (Nasdaq: QQQ) and SPDR S&P 500 (NYSE: SPY).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

One Security to Save us All - iPath S&P 500 VIX ST Futures (NYSE: VXX)

In anticipation of market turmoil and volatility, I sought a security to survive the storm. The iPath S&P 500 VIX ST Futures (NYSE: VXX) is just what the doctor ordered to hedge portfolios against a downturn now. On occasion, it can also serve the most morbid of investors to enjoy capital appreciation while most investments are being slaughtered. This appears to be just such an occasion, as I see risk of a 10% or greater market correction heightened from here through October. See the full report on the one security to save us all. 

Sector Security	Wednesday Midday 8-12-15
iPath S&P 500 VIX ST Futures (NYSE: VXX)	+5.4%
SPDR S&P 500 (NYSE: SPY)	-0.9%
SPDR Dow Jones (NYSE: DIA)	-1.1%
PowerShares QQQ (Nasdaq: QQQ)	-1.1%
iShares Russell 2000 (NYSE: IWM)	-1.3%
Vanguard Total Stock Market (NYSE: VTI)	-1.0%
PowerShares DB US Dollar Bullish (NYSE: UUP)	-1.2%
SPDR Gold Trust (NYSE: GLD)	+1.3%
iShares 20+ Year Treasury Bond ETF (NYSE: TLT)	+0.4%

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

The Four Horseman of Stock Market Apocalypse

While a doomsday like stock market crash is unlikely in my opinion, the market is ripe for volatility now. Four main issues trouble me today that I believe are worthy of concern. Ironically, volatility is cheap to buy now, so I suggest investors hedge market volatility risk today via the iPath S&P 500 VIX (NYSE: VXX) and instruments like it. See my full report on the 4 Horsemen of the Stock Market Apocalypse here.

Investment Sector Security	04-08-15 1:40 PM ET
SPDR S&P 500 (NYSE: SPY)	+0.3%
SPDR Dow Jones (NYSE: DIA)	+0.1%
PowerShares QQQ (Nasdaq: QQQ)	+0.6%
iShares Russell 2000 (NYSE: IWM)	+0.7%
Vanguard Total Stock Market (NYSE: VTI)	+0.3%

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Close VIX (VXX) Short Bets – 15% Gain Captured in 1 Month but Volatility is Back Now

About a month ago, I suggested investors short the iPath S&P VIX ST Futures ETN (NYSE: VXX). Volatility is back now, and the path of the VXX is more difficult to determine over the near-term. The VXX is no longer excessively over-valued in my opinion, and so I suggest investors take the approximate 15% 1-month gain here and close out positions. Some may consider going long volatility now into the Fed’s March meeting and thereafter if the Fed removes important language from its policy statement. See our full report on the VXX ETF here. Also interests (NYSE: UVXY), (NYSE: TVIX), (NYSE: XIV). 

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Why I’m Selling Market Volatility Here - Short VXX

In a market report published Tuesday morning, I outlined my opinion that the rally in the energy complex was drawing capital from the broader market, especially from the shares of the best performing stocks. That same issue is the reason, in my view, for the recent sharp rise in volatility, along with underlying concerns around Europe which are now easing as well. As a result of my view that this capital flow anomaly will fade along with Greece related fears, I have taken a short position against the iPath S&P 500 VIX ST Futures ETN (NYSE: VXX) using put options and am suggesting investors consider investments against volatility. See the full VXX report here. Other volatility securities include VelocityShares Daily 2X VIX (NYSE: TVIX), ProShares Ultra VIX ST (NYSE: UVXY), VelocityShares Daily Inverse VIX ST (NYSE: XIV), VelocityShares Daily Inverse VIX MT (NYSE: ZIV).

DISCLOSURE: Kaminis is short the VXX. Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.