It seems to have been rejected by the primary downtrend line (purple) on 4/20/2016. We need to watch it closely.
With volatility sticking around these lows, I'm looking at dispersing risk across several expiries of VXX by laddering short put verticals in June, July, and September (unfortunately, there is no August expiry yet) while I continue to work my VXX short call diagonals. Here's what I'm looking at now in the monthlies: VXX June 12/15 short put vertical...
With low volatility having drained premium not only out of the broader market, but individual underlyings as well, I continue to look at VIX and VXX derivatives to go "long volatility" in lieu of opting for low vol strategies like debit spreads, calendars, and diagonals. In this particular case, I'm opting to use a long call butterfly given its high risk/return...
I currently have several VXX short call diagonals on, all of which have the September monthly as the back month, and with the short calls at the 16, 17, 18 and 21 strikes. Today, with the 21, 18, and 17 short calls having lost a good deal of their value, I rolled them out to lock in profit as well as collect additional credit while I wait for a pop of some kind...
Use it with benevolence and love. Use it to pursue peace and serenity. Keep in mind that Doing cannot do much without Non-doing.
There is giant rising wedge forming. This ratio seems to indicate the aggregate perception of the US economy - the higher the better. As you can see in August 2015, there was a huge leg down which was unprecedented in this chart.
There is giant rising wedge forming. This ratio seems to indicate the aggregate perception of the US economy - the higher the better. As you can see in August 2015, there was a huge leg down which was unprecedented in this chart.
Putting on another VXX long setup, given the fact that we don't have many premium selling opportunities here (volatility low across the board, both in the broad markets and individual underlyings). Filled for a $400/contract debit ... . I'll look to take these VXX long setups off at 25% profit ... .
This is for you all stock market bears. Do not go short if this ratio keeps on breaking those resistance lines.
This is for you all stock market bears. Do not go short if this ratio keeps on breaking those resistance lines.
Watch the lines. This chart can guide you if you are pursuing the strategy of being long Gold/VIX, and this ratio dropping means you are winning.
Watch the lines for a good place to jump in if you are looking to long VIX. This chart helps us distinguish between fearless crashes and fearful crashes.
Instead of looking at SPX alone, looking at this ratio is better for shorting stocks/longing VIX, because it helps us distinguish between fearless crashes and fearful crashes. Watch the black/light blue/brown lines above. If this ratio breaks above those lines confidently, get out of shorts and wait for a better time to do so.
Instead of looking at SPX alone, looking at this ratio is better for shorting stocks/longing VIX, because it helps us distinguish between fearless crashes and fearful crashes. Watch the black/light blue/brown lines above. If this ratio breaks above those lines confidently, get out of shorts and wait for a better time to do so.
Adding to my "suite" of long VIX/VIX derivative setups, since there isn't much premium to sell in this market right now until we get into the "fat" of meaty earnings next week (NFLX, etc.). Filled for a $418/contract debit. I'll look to take these off at 25% max profit ... .
Layering on another long volatility setup here on this dip below 17.50 in VXX. (See Post below as to how to work this "poor man's covered call"). Unfortunately, there are virtually no metrics to provide with a diagonal, such as probability of profit, since it will vary depending on how much credit you collect during the life of the setup, when and how much VXX...
Another week of wasteland for premium selling, with EWZ again topping the volatility charts for non earnings plays, although I may go small with an IWM setup in the May monthly (it's the most volatile amongst the index ETF's, which ain't saying much). I've got one more short-term RUT/IUX setup on that I will need to address, but other than that, it's going to be...