September 18, 2017
In our previous blog post, we discussed why holding VXX and UVXY for long periods of time can be a costly mistake. We learned that contango and roll yield are the primary reasons why VXX and UVXY will eventually decay to zero (this does not happen because the ETPs reverse split, on average, every year and half to two years).
September 11, 2017
If you are a seasoned VIX derivatives trader, ignore this brief post. This is intended for the investor or trader that has recently stumbled upon VIX derivatives or doesn’t understand them in depth.There are numerous misconceptions related to the products VXX and UVXY.