Short VXX long-term? (bonds, broker, credit, investment)

[Arushan]

I don't really trust investment vehicles such as gold and treasury bonds as much as I used to, so I'm looking for more creative investments/trades.

So here's my idea: Short VXX. The decay due to negative roll yield will work to a huge advantage over time. Take a look: VXX Stock Charts - (NAR) Barclays Bank PLC iPath S&P 500 VIX Short-Term Futures ETN Stock Charts

I don't want to short anything leveraged due to broker expenses, etc. And I obviously don't want to short VXX until the VIX index spikes again.

Has anybody tried something like this?

Also, I'm looking at hedging it with a dynamic volatility ETP such as XVZ. This is a hypothetical chart for it: http://sixfigureinvesting.com/wp-con.../XVZ-chart.jpg

And I just realized, VXX is an ETN so I'm not sure if I'm comfortable with a possible credit risk. So maybe VIXY is a better choice to short because it's an ETF. What do you guys think?

[howard555]

Originally Posted by Arushan

I don't really trust investment vehicles such as gold and treasury bonds as much as I used to, so I'm looking for more creative investments/trades.

So here's my idea: Short VXX. The decay due to negative roll yield will work to a huge advantage over time. Take a look: VXX Stock Charts - (NAR) Barclays Bank PLC iPath S&P 500 VIX Short-Term Futures ETN Stock Charts

I don't want to short anything leveraged due to broker expenses, etc. And I obviously don't want to short VXX until the VIX index spikes again.

Has anybody tried something like this?

Also, I'm looking at hedging it with a dynamic volatility ETP such as XVZ. This is a hypothetical chart for it: http://sixfigureinvesting.com/wp-con.../XVZ-chart.jpg

And I just realized, VXX is an ETN so I'm not sure if I'm comfortable with a possible credit risk. So maybe VIXY is a better choice to short because it's an ETF. What do you guys think?

I've been looking for a discussion on VIX and VXX and VIXY and UVXY.

Above you say: So here's my idea: Short VXX.
Above you say: I obviously don't want to short VXX.

Is one of those a typographical error, or both are correct.

I've been in the VIX and looking for alternatives.

[Arushan]

Originally Posted by howard555

I've been looking for a discussion on VIX and VXX and VIXY and UVXY.

Above you say: So here's my idea: Short VXX.
Above you say: I obviously don't want to short VXX.

Is one of those a typographical error, or both are correct.

I've been in the VIX and looking for alternatives.

Both are correct. I meant that once the VIX spikes again, I'll start shorting VXX/VIXY because it would be unwise now due to the VIX being below 15.