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.