VXX Short setup looming

By Astatine

Updated

Clarified the previous chart. Think we might get opportunities as early as 44, but all the way to 46.5

Comment

Long vxx at range low. I will step away if VXX goes below 40 and call this one a fail

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Stops moved to break even

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Exited short term longs - +40% on calls
Entered short term puts at range high (42.05), looking to exit at 41 (weekly 41 strike puts)

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With premarket trading at just under 41, the thesis has been correct. I will exit these today.

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Exited these in the morning for around 20% gain.
Entered may 42s calls. Will exit when we come close to the resistance levels and then reposition for a nice trip down to 36s

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Exited 42 strike calls 60% gain

Going for 40 strike June puts

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Got two tranches in mostly using profits from the earlier trades. Lets see how it goss

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Got out of my positions at a small profit at the 4.5% dump today. Will reassess tomorrow. Ultimately my bearish view of spy is conflicting wirh my bearish view of vxx. This is why I am stepping away

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Got some puts yesterday after the early pop was faded into 41ish. Now looking for direct breakdown into target. Got some June 40 puts and May25th 39 puts

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Early morning action stopped me out, but I got back in with May25th 42 puts. The fact that action stopped exactly at the 44.1 resistance adds credence to my confidence that we head to 36 region soon.

Note to self: When you see vol heading down and spx heading down simultaneously, it's not worth the time to trade. Better to go on a holiday

Comment

Still think we get to 36 region, but hit my profit objective on my trade, so out.

Trade closed: target reached

Target has been reached for all practival purposes

Astatine

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