The market looks good until this hits 10Good day folks,
VXX is trading in a range from 10 to 55. The RSI is falling and the VI is bearish. 30 was tested a few time and couldn't hold, so I believe VXX will continue to fall until it reaches 10. Ofcourse, if it reaches this price I will load a few shares.
Volatility falling, I think the US market will continue to rise for the next few months.
Thank you,
GRN trade ideas
Double Breakout Setup for Volatility ProductsVXX, VIX, TVIX, VIXY, etc all consistently banging against a descending diagonal trend line, meanwhile also printing an inverse head & shoulders pattern. A break above neckline or DTL suggests a massive move higher for volatility, which spells trouble for equities and indices.
[Observation] VXX holding above short term supports.As a confirmation to my overall bearish equity view, VXX refuses to sell down below support.
Zooming in, today's bottom is also yesterday's high. Fractal nature of markets.
No position in VXX. I already took profits on the morning's pop. I am short other things like XLF and FB.
I think there will be follow through, but don't want to short the market into the weekend.
This is a great day to raise LOTS of cash into the weekend.
OPENING: VXX SEPT 20TH 20/23 LONG CALL VERTICAL... for a 1.35/contract debit.
Metrics:
Max Profit: $165/contract
Max Loss: $135/contract
Break Even: 21.35
Delta/Theta: 21.16/.55
Notes: I don't take long vol product positions very often, particularly those subject to contango erosion and/or beta slippage, but with the market at ATH's and the VIX at lows, taking a small shot here with better than risk one to make one metrics ... . It'll be a money, take, run at 25% max or greater.