VXX looks like a simple way to bet on a volatility spike. Buy it when you think the market is about to sell off, collect when the VIX pops. The problem is the chart. It drifts lower almost every single day, requiring reverse splits just to keep the price above zero. Tom Preston explains exactly why. VXX owns a rolling portfolio of VIX futures. When those futures are in contango, which they almost always are, VXX is forced to sell cheaper near-term contracts and buy more expensive further-dated ones every single day. That roll cost is the structural drag eating away at the position. Tom shows what the futures actually look like live on the platform and explains the one scenario where VXX becomes worth considering: backwardation. Helpful links: tastylive: tastylive.com Get Tom's pre-market analysis every morning: tastylive.com/newsletters FREE Options Strategy Guide: tinyurl.com/bp9ms763 Follow tastylive on X: x.com/tastyliveshow CHAPTERS: 00:00 VXX: The ...