A clear disparity has emerged between the level of the VIX at the beginning of the year and the level of the VIX currently. The VIX tends to be a great indicator of fear and capitulation (capitulation usually marking long-term or interim bottoms) and it seems to be clear that there is currently more complacency than panic at the moment.
Typically a rising VIX means a falling market and any prediction of a much higher VIX also means a much lower market. On Friday we lost 50 S&P points and the VIX moved only 1 point higher! What kind of move do we need to get this to budge? In essence, we could be in for a crash over the coming weeks.
I am playing this long volatility call by purchasing a SPY at-the-money straddle. On Friday, at the close, I purchased the SPY 261 Jan 9 2019 straddle for $10.40. That being said, I think the VXX can be bought with the following parameters:
Buy VXX on a break of the resistance line @ $41.85.
Target 1: $45.90
Target 2: $53
Stop: $38
Typically a rising VIX means a falling market and any prediction of a much higher VIX also means a much lower market. On Friday we lost 50 S&P points and the VIX moved only 1 point higher! What kind of move do we need to get this to budge? In essence, we could be in for a crash over the coming weeks.
I am playing this long volatility call by purchasing a SPY at-the-money straddle. On Friday, at the close, I purchased the SPY 261 Jan 9 2019 straddle for $10.40. That being said, I think the VXX can be bought with the following parameters:
Buy VXX on a break of the resistance line @ $41.85.
Target 1: $45.90
Target 2: $53
Stop: $38
Dagangan aktif
Nota
This trade is well through its first target. TIme to take most of it off. There's a chance we get a huge vol spike on the open that I would be a seller of.Dagangan ditutup: sasaran tercapai
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.