I'm not hugely fond of going long volatility, particularly in an instrument that gets routinely battered by contango and/or beta erosion.
With VIX closing in on its 2019 low, however, it may be time to consider one.
Pictured here is a VXX "Super Bull" made up of a 16/18 short put vertical and a 18/20 long call vertical. As of Friday close, it pays a small .11...
Now, that I have your attention.
When this breaks down:
EOS will dip then possibly moon. I am quite literal here because I believe that if BTC dips below 3800 it will keep falling for a bit. EOS being the top gainer recently, along with other altcoins, will be seen as a speculative valuable investment asset that has the best gain potential out there. Out of...
Iphone, Iphone, Iphone. <---Some good points of the Apple stock...What seems like a good time to sell is just a better time to buy. If this stock is an animal spirit, it is a squirrel. Super American, Sleek, and ready to duke it out over the nuts. IDK if that even makes sense...but APPL is a pretty sweet company, and would be a good addition to the portfolio...
Trade setup on chart.
Executed the trade for a $.37 credit.
The call spread in July is a bit of a moon shot, but the trade is setting up currently to be a 22.3% ROC by Oct if it expires worthless. I may continue to add call spreads if possible here.
Banks have sold off here and I believe if the market can start to move again, financials will recover. I structured a Super bull for this trade.
Trade: In chart.
Overall, $.46 credit on the trade.
Current risk: $454
Current R/R: 10.2% ROC (likely to increase if I can capture profits in the call spread.
At some point volatility has to come up.... So I bought the 14/15 Call debit spread and financed it with the 13 Put
The trade:
VXX superbull
Buy the 14 Call
Sell the 15 Call
Sell the 13 Put
64% probability of profit
Break even at 12.95
Barring a Chinese Yuan devaluation of significant magnitude, the Yen is going to go a lot lower. Yields in Japan are pinned to the floor, while rates everywhere else are rising. This growing spread will crush the Yen
With VIX finishing the week quite a bit below 15, I'm probably going to pass on the 45 DTE index iron condor I ordinarily put on in RUT, SPX, or NDX and look elsewhere for my premium selling plays; this usually means: either (a) look at earnings plays or an exchange traded fund in which volatility is high; (b) do a long volatility play (such as the VIX "Super...
... for a .25 debit.
The "Super Bull" consists of two parts -- a short put vertical (bullish assumption) for which you received a credit and a long call vertical (also bullish assumption), for which you pay a debit. In this case, I had to pay a little more for the long call vertical than I got in credit for the short put vertical.
The notion here is to either...
