iPath S&P 500 VIX Short-Term Futures (NYSEMKT:VXX)

CAPS Rating: 1 out of 5


Player Avatar RM1206 (< 20) Submitted: 11/16/2013 12:30:00 AM : Underperform Start Price: $46.56 VXX Score: +49.86

VXX suffers from contango and has lost approximately 70% each year for the past two years. It will spike from time to time but its value will erode over the long run. The only reason the price is not zero is due to reverse stock splits. VXX had a 4 to 1 reverse split recently. Buy long term VXX puts or XIV to benefit from this trend.

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