A Hearty Welcome To XXV

• Posted by Adam Warner
• on July 20th, 2010

Hey, we have a new Trading Volatility Friend in town. I delve into the ugliess on InvestorPlace.

Just when you thought we had enough ways to bet on volatility without actually buying an option, along comes another one!

Yes, Barclay’s “miracled” us with XXV! What is XXV, you ask?

Inverse S&P 500 VIX Short-Term Futures ETN (NYSE: XXV) is the inverse VIX.

Well, more specifically, it’s inverse iPath S&P 500 VIX Short Term Futures ETN (NYSE: VXX). In fact, if you line them up, it’s also a palindrome: XXV VXX.

And, personally, I think that’s the best use for this new toy.

Please click thru for the balance of the post, including lots of fun with compounding math.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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