Video #123) VXX is NOT broken
- Brent Osachoff
- Sep 7, 2020
- 1 min read
Updated: Nov 16, 2020
One of the most important aspects of successfully trading volatility ETPs is to actually understand how they work and the mechanism as to how they derive their price. In this video we talk about the long term correlation of VXX to the S&P 500, the beta factor and how much they move relative to one another, as well as under what conditions they can deviate from each other and why. Trust me, these products are not broken, manipulated, or a scam. They are just a little bit more complicated than stocks, so dive in, and feel free to ask questions if you don't understand something.
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