Many are not aware of this, but the VXX and VIX are NOT linearly related. That is, a 20% move up in the VIX might only result in an 8% increase in the VXX etf.... many people that trade VXX think that it works like SPY SSO SDS etc. to produce a nearly identical percent change.
For example, today the VXX closed up 0.41% while VIX closed down 3.38%
Conversely, SSO is usually very very close to 2x the SPY. and spy usually very close to mimicking the sp500 (from a % increase/decrease perspective). This is not the case with VXX and VIX.
Nevertheless, for swing trades (days holding) or mid-term trades (a few months holding), the VXX is a good vehicle. If you think that the VIX will go up, then buying VXX long will put you in place to take advantage of that move in the VIX.
I took profits 2 days ago in VXX (nice run up, dont have any now)
,,,, looking at some more to buy soon.
* ChristopherStockGuy is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. For details, see the post from SATURDAY, AUGUST 15, 2009 titled "Disclaimer".
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