The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to answer the question now, “What is the difference between VXX and UVXY?” In yesterday’s daily call podcast, we talked about VIX versus VXX. Today, we’re going to be talking about the differences between VXX and UVXY. Now, there’s a lot that we could get into and we’ll try to narrow it down as much as possible, but the main difference between these two because they are both still ETNs and they do trade like ETFs and like ETNs, you can buy and sell them, you can trade options on them, etcetera, but the main difference is that UVXY is leveraged. This could work to your advantage, depending on which direction you’re trading it or it could work to your disadvantage. What happens with VXX is that VXX holds unleveraged positions in Vix futures. It would consider typically, sell the front month contracts that it’s long and then buy the back month contracts to replace. Well, in the case of UVXY, they hold a