Novice Trade: iPath S&P 500 VIX ST Futures

The market is on an absolute tear right now. And the extent that volatility in the S&P 500 is being crushed is somewhat shocking to me. While VIX futures are getting murdered today, the VIX futures have an extremely wide spread between the cash index and the front month futures. The VIX could rally to 17 and the front-month future would still need to fall to settle into the cash index.

I think the next few days could be extremely rough for iPath S&P 500 VIX ST Futures ETN (VXX). It could drop below $18 in a flash and maybe below $17 with enough time. In my opinion, the VXX 19 puts for less than $0.90 expiring by April 8 are a value. We could see a few days of this ETN dropping $0.20-$0.50 a day....46 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.