21 replies to this topic

[dTraderB]

Agreed, VXX is not your typical BUY & HOLD trade  Also, VXX, like other volatility instruments usually decay over weekends etc and then inflate at the start of the next week etc etc.

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But, this is relative volatility trade, also a political one, that I may hold on for a week or two or ..... I will risk about 1500 on the trade, and decide to close or keep it, depending on the market movements. 

[Harapa]

Good luck..

BTW, my FF is VXX to trade <40 in next 5 days...

Edited by Harapa, 26 April 2018 - 11:37 AM.

[12SPX]

Good luck..

BTW, my FF is VXX to trade <40 in next 5 days...

to 40 wow??

[dTraderB]

I think there is a 50/50 probability of VXX dropping to 37 in about 7 to 12 days

But that's why I am starting to build a position from now and will evaluate as the market moves, up or down.  

With VXX now at 42.10 as I write this, I have a loss of of 0.10 per lot 

I may even buy  at stops on the way UP....  or add on a buy limit 200 points lower..... it is not as if I have a huge VXX position now and expect a rapid rally to make a massive profit. 

I have traded VXX many times before and am aware of the potential loss/profits and also how it behaves etc. When I said it was a relative volatility trade, it is in the context of where VXX is now relative to SPX, and I believe it is relatively low. 

[kaiser soze]

My consolidation thesis for yesterday was proven to be correct, but I must say I was surprised by the strength and breadth of the bounce today. There are two possibilities:\

 

a. Slew of megacap earnings after the bell disappoint, and stocks "Jump the Creek" (hat-tip to Semi) to go back below 2662 Fib resistance. 

 

OR

 

b. Earnings are well-received and $SPX makes a break for 2720 in the next two to six trading days which means the move from 2609 is real and not merely a dead cat bounce to relieve bearish sentiment.

Edited by kaiser soze, 26 April 2018 - 01:34 PM.

[dTraderB]

Sell short VXX at 42.54

Still holding VXX long

[dTraderB]

closing VXX short @ 41.44

 

Long VXX @ 42.10

looking to add below 41

[dTraderB]

Sell short VXX @41.82

[dTraderB]

Weekend volatility deflation continues...... 

ES down, VIX down, VXX down

[da_cheif]

es is at one pt discount to cash with cash up 5.....es 13 off the low   dow up 10    spy rolling l...nas rolling