Volatility is mean-reverting, meaning after a spike, there is inherent downward drag even if the market remains flat, though this does not guarantee a flat $SPX day = flat/down VIX day. Options are priced accordingly given that the expectation (not guarantee) is that $VXX goes down. Probably should stay away from VIX-related tickers until you understand how it works. It's a quick way to get scorched.


I agree with everything you said, plus I think VXX has additional drag as an ETF that tracks a future as it's underlying so it needs to constantly be moving from front to back months which drag it down further.


There is TONS of premium there. It's at 155 IV. But it's only a.$25 asset so the resulting moves are on the single digits. Not much $ premium.


You are using options on ETF that consists of futures on volatility index (options). It is like having sex via zoom with 3 condoms and a hazard protection suit. Why not trade VIX options directly? VXX is a good instrument for accounts that can not trade options but want to hedge.