I created a bear spread on VXX, selling February S28 calls at .39 and buying February S29 calls at .17. VXX was at 27.90 at the time.
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I created a bear spread on VXX, selling February S28 calls at .39 and buying February S29 calls at .17. VXX was at 27.90 at the time.
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I agree. The VIX was acting weird too, but the VXX gave a stronger signal. It was pretty unusual last week to end like it did, with an apparent strong ending with the SPX, but with VXX moving up also. Cost me some money…
— Vance
Interestingly, it seemed as if VXX was a leading indicator for the big drop today.
It was an odd move. When I saw it I checked the news to see if there had been any big announcements. The SPX moves late in the day didn’t justify that kind of spike. One observation is that VXX didn’t seem to track the big VIX jump between 12:00 and 12:30 ET. The VIX jumped 3.3% and VXX only moved around 1.0% with an immediate pull back. I’m wondering if the VXX late move was just catch-up for the earlier VIX jump.
— Vance
Any idea why VXX spiked at the end of the day?