MoneyPatterns

VIXY - Low Risk Entry

AMEX:VIXY   PROSHARES TRUST II
I AM NOT ENTERED IN THE TRADE BELOW. I WILL UPDATE IF I ENTER/GET FILLED

The trade ideas below are meant to be low risk entries for bearish bias after Jan. 1st, expecting market pullback from capital gains profit-taking.
Please let me know if you have any questions, or have another idea to share with others.
I really appreciate all comments and inspiration/ideas from others.
I will update entry prices on Monday 12/30 if things change or I get filled.

Chart Details
VIXY is almost at the end of the current shoe/banana pattern (repeating in chart)
RSI on Daily is turning up. Need to see price breakout of pattern around $12.85 to confirm bullish .
Weekly RSI trend is bullish wedge . I find VIXY RSI patterns are also useful for breakouts.
Daily trend dots show bullish trend is next and close to turning bullish .
Two low gaps to fill at $12.50 & $14.80. This is where I would probably exit the trade listed below.

Entry Options
2 choices - Low Risk. Each leg of any spread below is 65% or greater POP (probability of profit).
-Jan 17 expiry. 12/14 Put Credit Spread. Credit of $1.60 or more. Max risk/loss $39.80. Max gain is full credit of $160. Exit at 50% profit or your risk tolerance.
-Jan 17 expiry. 12/15 Put Credit Spread. Credit of $2.60 or more. Max risk/loss $40.00. Max gain is full credit of $260. Exit at 50% profit or your risk tolerance.
I prefer higher credit and keeping shorter term. Rather than lower spread (12/14) and thinking I will keep max credit at expiry.
My preference here is the 12/15 - same risk, more reward. Not keeping till expiry.

About Me
Thank you for liking, commenting, throwing up a chart, following, or viewing.
I am not a financial advisor. My comments and reviews are based on what I do with my personal accounts.
I am transitioning to my new website http://www.moneypatterns.com and will be updating my username here. Same guy - new name. :)
Website will be ready for launch mid-January 2020. Thank you for your patience while I try to juggle everything and maintain the same standards.
Disclosure - I am long BTCUSD , GBTC .
Trade closed: stop reached: VIXY getting pushed down.
Back to assuming that Fed Repos running out on 1/14 may be better catalyst for entry here.

Comments

I'll start loading up on 02 Jan... Thursdays tend to be weakest and tax selling will start then.
Reply
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