Top 11 Questions About the CBOE’s VIX

Based on searches that lead people to Six Figure Investing, these are the top 10 questions people ask about volatility investing: How can I buy/trade/invest in the CBOE’s VIX® index?   The short answer is that you can’t.  No one has figured out how to do this economically. However, there are quite a few investment approaches that allow you to trade in volatility, including futures, options on …

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Earn 2%-3% Per Week Trading Options? The Catch…

Update Trade Options Weekly no longer appears to be around, but there are people still providing the same basic strategy (e.g, 5Percent{PerWeek.com).   Be aware these are high risk strategies Original Post If you do any amount of browsing on stocks and options you’ve seen ads for services that tout weekly percentage gains of several percent.  I’ve never really been tempted to investigate these—I reflexively …

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Calculating VIXMO—the Easy Part

Update:  On October 6th, 2014 the CBOE changed the calculation method for the VIX to include SPX weekly options,  the old VIX calculation is still being reported using the VIXMO  (VIX Month Only) ticker.  The new calculation uses the VIX ticker.  For more on the new calculation see “Calculating the New VIX“.   The movements of the CBOE’s VIX® are often confusing.  It usually moves the …

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How Does VXX Work?

This post will discuss what VXX is ( full name: iPath S&P Series B S&P 500 VIX Short-Term Futures), how it trades, how its value is established, what it tracks, and how Barclays makes money running it.  VXX has been through some transitions recently.  The original security matured in January 2019 and was replaced by VXXB, which was very similar except for a few items …

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When You Think Your Exchange Traded Fund is Broken…

Frequently I see people complaining that their Exchange Traded Fund (ETF) or Exchange Traded Note (ETN) is broken. Occasionally they’re right, but most of the time they’re not.  Before complaining, here are some things to look at: Are you looking at the right index? All Exchange Traded Products (ETPs) track an index, which is identified in their prospectus, and in the fund’s fact sheet.   Don’t …

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