VXX Forecast


Bullish Case: Rising market uncertainty could trigger a spike in VXX, supported by a potential shift in investor sentiment. Implied volatility forecasts show increased future volatility, with a historical tendency for mean reversion, suggesting upside is possible.


Bearish Case: Persistent bearish market conditions, low demand for volatility hedging, and decreasing short-term implied volatility indicate VXX may continue to experience downward pressure, driven by prolonged market stability and past performance trends.


Potential Outcomes:

1) 20% chance of a significant market shock raising VXX above $50.

2) 50% chance of trading flat to $45.

3) 30% chance of gradual decline, keeping under $45 in stable conditions.


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July 26, 2024


iPath Series B S&P 500 VIX Short-Term Futures Forecast

VXX      iPath Series B S&P 500 VIX Short-Term Futures











Correlated Assets

Assets that tend to move strongly with VXX



VIXY Forecast + Options Trading Strategies   VIXY  ProShares VIX Short-Term Futures (1.0)


UVXY Forecast + Options Trading Strategies   UVXY  ProShares Ultra VIX Short-Term Futures (0.99)


VIXM Forecast + Options Trading Strategies   VIXM  ProShares VIX Mid-Term Futures (0.97)


SQQQ Forecast + Options Trading Strategies   SQQQ  ProShares UltraPro Short QQQ (0.96)


TECS Forecast + Options Trading Strategies   TECS  Direxion Daily Technology Bear 3X Shares (0.95)



Uncorrelated Assets

Assets with little price relationship to VXX



VAL Forecast + Options Trading Strategies   VAL  Valaris (0.0)


EWZ Forecast + Options Trading Strategies   EWZ  iShares MSCI Brazil (0.0)


SSTK Forecast + Options Trading Strategies   SSTK  Shutterstock (-0.0)


FPI Forecast + Options Trading Strategies   FPI  Farmland (-0.0)


TEAM Forecast + Options Trading Strategies   TEAM  Atlassian (0.0)



Anticorrelated Assets

Assets that tend to move strongly against VXX



VRT Forecast + Options Trading Strategies   VRT  Vertiv (-0.96)


LDOS Forecast + Options Trading Strategies   LDOS  Leidos (-0.96)


VST Forecast + Options Trading Strategies   VST  Vistra (-0.96)


TT Forecast + Options Trading Strategies   TT  Trane (-0.97)


KKR Forecast + Options Trading Strategies   KKR  KKR (-0.97)





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