VXX OPTIONS SHORT PUT Long

iPath Series B S&P 500 VIX Short-Term Futures ETNArca

Description

⋅ Nov 25, 2014 6:11 PM

SHORT PULL BACK IN US STOCK INDEXES IS DUE
SELL THE ATM VXX OPTIONS
SCAL IN IF CLOSES LOWER THAN THE PREVIOUS ENTRY PRICE

COVER WHEN 2 PERIOD PDI >70

short#put#vxx

Comments

Trance-Man

⋅ Nov 25, 2014 7:08 PM

OK Dachiri, understood, thanks!

Trance-Man

⋅ Nov 25, 2014 6:23 PM

Can you elaborate a bit more on this. If indexes fall you want to short ATM VXX? Wouldn't you want to be a buyer of VXX or VXX call options?

Trance-Man

⋅ Nov 25, 2014 6:23 PM

Thanks for the insight by the way.

DaChi

⋅ Nov 25, 2014 7:04 PM

Hi Trance-Man
there are several tactical possibilities including the ones you mentioned.
Volatility tends to clustering, so in thislow volatility environment I think there will be an explosion, and I want to take advantage of time decay on put options.

DaChi

⋅ Nov 25, 2014 7:04 PM

sorry
will be not an explosion of volatility