Win a Subsription to Expiring Monthly

As a sincere thank you to subscribers, Expiring Monthly: The Option Traders Journal is running a contest and offering a valuable prize to  one lucky subscriber. 

Non-subscribers also are encouraged to enter.  Your entries will be separated from those of subscribers, and the winner receives a one-year paid subscription to Expiring Monthly.


It's easy to enter.  Details at expiringmonthy.com

Entry deadline: Midnight (CT) Saturday, Jul 3, 2010


Prizes awarded to the subscriber and non-subscriber whose entries are nearest to the closing price of VXX on July 16, 2010.  In case of ties, the earliest entry wins. 

The winner is determined by distance from the correct answer.  It does not matter whether your guess is over or under the actual closing price.


The Prize: IVolatility.com is generously offering a three-month subscription to the 'Volatility Essentials' Package.  Retail value $96.80 per month (although occasionally they
do make special offers, such as the one advertised in this month's
Expiring
Monthly
).

Six of their most popular analytical and management
tools are combined into a new convenient package called "Volatility Essentials."  

The subscription combines data and analysis tools in a single
package, increasing the probability
of making the best available trade.

"Everything needed to run an option portfolio like a professional"

Included are:

  • Vol ranker: quickly find equities with cheap/expensive options
  • All important pricing data plus the
    "Greeks", skew and volatility surface data
  • Live P/L calculator. Automatically updates data for multi- variable risk profiles
    and simulation analysis
  • Maintain updated portfolio with prices,
    volatility and correlation data
  • Historical volatility data, put call ratios,
    volume, open interest, and volatility charts going back as far as 10 years

     
  • Live calculator automatically updates prices and "Greeks"

A little information about VXX

The iPath S&P 500
VIX Short-Term Futures ETN
, VXX began trading Jan 9, 2009. As Bill Luby reports at VIX and More, this product was a hit from its first day, and trading volume has been expanding steadily. The unfortunate news is that most who bought this vehicle (as a long-term investment) were far too early.  VXX declined steadily from the beginning.  Until one day, it reversed direction


Vxx
Weekly chart of VXX, since inception (StockCharts.com)

VXX
is not designed for investors.  It's a short-term trading vehicle because
it is re-balanced  daily to keep the portfolio invested in futures with an average expiration 30 days in the future.  That involves daily trading expenses and slippage.

iPath, the company that manages VXX, tries to explain the important details.  The sad fact is that too many individual traders buy and sell this item without understanding what they are trading. That's nothing new, as it has been a way of life for VIX option traders. (VIX options DO NOT track the daily VIX  -  they are options on VIX futures contracts.


Join the fun.

Enter the contest.

Thank you for subscribing.

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2 Responses to Win a Subsription to Expiring Monthly

  1. Brendan 06/28/2010 at 8:41 PM #

    I just learned the other day that investors can buy and sell options on ETNs including AMJ (JP Morgan’s Alerian MLP note) and most notably, VXX. This is interesting to me ’cause it seems that in time (w/ much more volume) one will be able to effectively hedge all asset classes with a wide variety of exchange-traded options within an allocation instead of relying on OTC instruments, etc. This development also mitigates the concern many folks have (reasonably, I’d add) re. the risk of an ETN issuer defaulting on these unsecured debt obligations (a la many a Lehman structured note). Very cool.

  2. Mark Wolfinger 06/28/2010 at 9:02 PM #

    A useful tool is a joy forever.