The VXX is coming to maturity, how can we transition our positions from VXX to VXXB?
VXX is an Exchange Traded Note that provides exposure to short term volatility futures. As an ETN, which is a debt instrument, the product has a maturity date. In the case of VXX, it will cease trading on January 30th, 2019 and be replaced by VXXB.
If a trader currently has positions in VXX, the preferred method for handling this transition is to close the existing positions on the open market. Although liquidity is light on VXXB now, it should be improved as funds transition after maturity. Alternative volatility products to trade in the interim are VIX and UVXY.