The Volatility ETF hits the Reset Button

Volatility - Large Pic

Just like that from $8 a share to $35, the VXX looks better.  Really?

A bit of nothing up my sleeve work from the from the brain-trust at Proshares.  They did a sneaky reverse split on the iPath S&P 500 VIX ST Futures ETN 's (VXX) on Friday.


 


The reverse stock split turned 4 shares to 1 share of the VXX.  Boosting the stock price of the VXX from $8 to $35 overnight.  The VXX did have a good today as stocks couldn't make up their mind on which direction or which headline to believe.  Volatility was brought back into the forefront with the VXX finished up 4% to close at $35.98.


Should the market continue to flip-flop John Kerry style then the VXX makes for a decent play.  However place tight stops if you intend on trading it.  Use caution and only apply ample amounts (much like zit cream). 


vxx