VXZ trade ideas
VXX - VOL reign again?This is tough pill to swallow!
Best way to trade VXX is when it closes above 20MA. That becomes your support. If it closes below 20MA, just get out of VXX!
Maybe some volatility is getting backS&P 500 closed above its 50-day MA and looks fairly stable here, but there's a sharp move in volatility yesterday which shows the market may be sceptical about the idea of further growth. Will be looking if it close yest's gap
VXX most overbought since the electionVXX based on the 2 hourly rsi, is the most extended since the election.
Neutral/Bullish trade on VXXWe are at the lows and this trade is a neutral to bullish strategy. By selling the 18/19 Credit spread we make money if VXX continues to go down, however by selling the At the money Put we collect enough premium so that we have no risk to the upside in case volatility decides to explode.
To be more efficient with my capital I am also buying the 13 Put improving my margin requirements by 76% percent and only losing 4% of the credit received.
I collected 1.09 per contract with a 70% chance to close at 50%
VXX looking bullishTrend line broken. If genuine then VXX could make a move Long. See projected on chart for potential targets.
GO LONG VXX!Accumulating here at a pierce of even # $16. Nice hedge against the longs in the portfolio in the meantime. Upside targets $16.60, $17 and beyond.
