Since volatility is often viewed as being a bad thing and having a negative correlation to equities and other riskier assets, the timing could be right for the iPath S&P 500 VIX Short Term Futures TM ETN (NYSE: VXX) and rival exchange-traded notes (ETNs), such as the once notorious Credit Suisse AG - VelocityShares Daily 2x VIX Short Term (NYSE: TVIX).
Indeed, global equity markets are delivering plenty of volatility this year. At least that is the perception among many investors. However, it is hard to tell when examining traders' treatment of volatility exchange traded products, such as the aforementioned TVIX and VXX. Despite what appears to be a strong case for VIX ETNs, traders are currently applying restraint when it comes to these products.
Volatility In The Not-So-Distant Past
Volatility has been on the rise this year, ...
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