A Quick Volatility Check: UVXY, VXX, and XIV

A volatile day of trading has the ProShares Trust Ultra VIX Short Term Futures ETF (UVXY), the iPath S&P 500 VIX Short-Term Futures ETN (VXX), and the VelocityShares Daily Inverse VIX Short-Term ETN (XIV) on the move

Karee Venema

Jun 29, 2015 at 2:56 PM

Anxiety from overseas has sent U.S. markets on a wild ride today, with the Dow tracking a more than 290-point path so far. This frantic price action is being witnessed in a number of volatility vehicles, including the ProShares Trust Ultra VIX Short Term Futures ETF (UVXY), the iPath S&P 500 VIX Short-Term Futures ETN (VXX), and the VelocityShares Daily Inverse VIX Short-Term ETN (XIV) -- which are all making notable moves.

UVXY is up 28.8% at 42.69, after hurdling its 40-day moving average. This trendline has been ushering the shares lower since mid-February, providing a big hand in ProShares Trust Ultra VIX Short Term Futures ETF's 68% year-to-date deficit. In the options pits, calls and puts are crossing at two times the average intraday pace. It appears speculators betting on a quick retreat by this Thursday's close are buying to open the weekly 7/2 38-strike put, while those eyeing an extended run higher are purchasing new positions at the weekly 7/2 42-strike call.

VXX has jumped 14.4% to 19.85. The exchange-traded note (ETN) has taken out its 50-day moving average, and is also on pace to notch its highest close since mid-May. Longer term, iPath S&P 500 VIX Short-Term Futures ETN is off 38% year-to-date, and hit a record low of 16.85 last Wednesday. Speculators are rushing the equity this afternoon, with overall option activity running at almost three times what's typically seen at this point in the day. Drilling down, new positions are being initiated at VXX's weekly 7/2 20-strike call and August 17 put.

XIV -- which trades inverse to that of VXX -- is down 13.1% at 42.26, and on track to close south of its 60-day moving average for the first time since Feb. 23. Year-to-date, the ETN has added 36%, and topped out at an all-time peak of 50.10 (you guessed it) this past Wednesday. While the VelocityShares Daily Inverse VIX Short-Term ETN doesn't trade options, there's still plenty of skepticism surrounding it. Specifically, more than 70% of the ETN's float is sold short.

Follow @Schaeffers

Are You Ready for AI's Potential Supercycle Phase?
Amazon's Jeff Bezos surprised investors when he revealed that one emerging technology is the key to Amazon's future success... This technology could be worth $80 trillion by 2030. Learn more and join Motley Fool's Stock Advisor for 50% off!

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.