Options Industry

VIX ETFs Hit New Lows After Fear Gauge Tumbled


Along with the VIX tumbling to 2007 lows on Wednesday, volatility ETFs followed suit as well, reported ETF Trends.

This included the iPath S&P 500 VIX Short Term Futures ETN (VXX) and the VelocityShares Daily 2x VIX Short-Term ETN (TVIX).

By Wednesday morning, TVIX was down 3% and for the year-to-date, it's down 28.91%; this follows last week's VIX plunge of 39%. 

Keep in mind this fall also came after the VIX rose greater than 40% prior to 2012's end--more than the stock market's volatility wrote, wrote Michael Santoli for Yahoo!.

Since 2008, the volatility-based products have become very popular after the financial crisis, evolving into a new asset class Santoli refers to as "the downside."

In addition to the VXX and TVIX, other volatility ETF products include VelocityShares VIX Short-Term ETN (NYSEArca: VIIX), ProShares Ultra VIX Short-Term Futures (NYSEArca: UVXY) and ProShares VIX Short-Term Futures ETF (NYSEArca: VIXY).

The products, which dramatically fell in 2012 and all continue to do so in this short new year, are designed to track VIX futures contracts rather than the spot price.

While they have faced tough times, this comes as the CBOE futures exchange reported a record-breaking year in 2012, including its VIX futures volume setting a new annual record with 23.79 million contracts traded.

These new highs took place while more than 95% of call options on VIX futures traded in 2012 expired worthless noted Santoli. 

On Thursday, the VIX closed at 13.49, down 2.32%. 


About The Options Insider


The Options Insider is dedicated to providing free options information, education, news and analysis for options users. Whether it's on TheOptionsInsider.com, a leading online options destination; through the Options Insider Radio Network, the world's only radio network for options users; or through a growing number of newsletters and live events, The Options Insider continues to find new ways to deliver compelling content to options users across the globe.

Author's web site: http://www.TheOptionsInsider.com


View The Options Insider's post archive >

Advertisement Continue reading

The Options News RundownAudio

Your source for the most important news and information from the world of options.

The Options Insider Radio NetworkAudio

All of our radio programs in one convenient place.

Options Insider RadioAudio

The original options podcast. Features interviews with leading options figures.

The Option BlockAudio

This high-octane program features education, analysis, strategies and unusual activity.

Volatility ViewsAudio

The premier radio program for volatility traders.

The Long And Short Of Futures OptionsAudio

Your source for futures options information.

The Advisor's OptionAudio

Arming advisors with the info necessary to manage risk.

Options Boot CampAudio

Get into peak options trading shape.

Options Insider Special EventsAudio

Compelling panel & special event recordings from the options world.

OIC's Wide World of OptionsAudio

A dynamic mix of current events, investor resources, & strategy insights.

The Futures Options RoundtableAudio

Futures Options Analysis, Education, Strategies and More...

Trading Tech TalkAudio

Trading Tech Talk

Options Playbook RadioAudio

Break down cutting-edge options strategies and learn how to incorporate them into your portfolio

x

The Options Insider Radio Network

The Options News Rundown

Your source for the most important news and information from the world of options.

The Options News Rundown

The Options Insider Radio Network

All of our radio programs in one convenient place.

The Options Insider Radio Network

Options Insider Radio

The original options podcast. Features interviews with leading options figures.

Options Insider Radio

The Option Block

This high-octane program features education, analysis, strategies and unusual activity.

The Option Block

Volatility Views

The premier radio program for volatility traders.

Volatility Views

The Long And Short Of Futures Options

Your source for futures options information.

The Long And Short Of Futures Options

The Advisor's Option

Arming advisors with the info necessary to manage risk.

The Advisor's Option

Options Boot Camp

Get into peak options trading shape.

Options Boot Camp

Options Insider Special Events

Compelling panel & special event recordings from the options world.

Options Insider Special Events

OIC's Wide World of Options

A dynamic mix of current events, investor resources, & strategy insights.

OIC's Wide World of Options

The Futures Options Roundtable

Futures Options Analysis, Education, Strategies and More...

The Futures Options Roundtable

Trading Tech Talk

Trading Tech Talk

Trading Tech Talk

Options Playbook Radio

Break down cutting-edge options strategies and learn how to incorporate them into your portfolio

Options Playbook Radio