VIX Breaks 30, Kills VIX ETF/ETN Trades (VXX, VXZ)

fire2The CBOE Volatility Index, or the beloved ‘VIX’ or ‘Fear Index,’ has reached a level not seen since September, 2008.  While the low yesterday appears to be 30.0, we have not seen this number below 30.0 since September 19, 2008.  In October we saw a high of 89.53 and this was around 50 even at the market lows in March.  It seems there was some price sensitivity to it as the index values came lower and lower.  The drop in the VIX is also having some key impacts on the ETF’s (actually ETN’s) iPath S&P 500 VIX Short-Term Futures ETN (NYSE: VXX) and the iPath S&P 500 VIX Mid-Term Futures ETN (NYSE: VXZ).

The VIX ETF’s (actually ETN’s) are hitting new lows as well.  The iPath S&P 500 VIX Short-Term Futures ETN (NYSE: VXX) is down 2.2% at $76.16, compared to a 52-week range (actually about 3+ months is all) of $77.49 to $120.00.

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