A clear disparity has emerged between the level of the VIX at the beginning of the year and the level of the VIX currently. The VIX tends to be a great indicator of fear and capitulation (capitulation usually marking long-term or interim bottoms) and it seems to be clear that there is currently more complacency than panic at the moment.
Typically a rising VIX means a falling market and any prediction of a much higher VIX also means a much lower market. On Friday we lost 50 S&P points and the VIX moved only 1 point higher! What kind of move do we need to get this to budge? In essence, we could be in for a crash over the coming weeks.
I am playing this long volatility call by purchasing a SPY at-the-money straddle. On Friday, at the close, I purchased the SPY 261 Jan 9 2019 straddle for $10.40. That being said, I think the VXX can be bought with the following parameters:
Buy VXX on a break of the resistance line @ $41.85.
Target 1: $45.90
Target 2: $53
Stop: $38
Typically a rising VIX means a falling market and any prediction of a much higher VIX also means a much lower market. On Friday we lost 50 S&P points and the VIX moved only 1 point higher! What kind of move do we need to get this to budge? In essence, we could be in for a crash over the coming weeks.
I am playing this long volatility call by purchasing a SPY at-the-money straddle. On Friday, at the close, I purchased the SPY 261 Jan 9 2019 straddle for $10.40. That being said, I think the VXX can be bought with the following parameters:
Buy VXX on a break of the resistance line @ $41.85.
Target 1: $45.90
Target 2: $53
Stop: $38
İşlem aktif
Not
This trade is well through its first target. TIme to take most of it off. There's a chance we get a huge vol spike on the open that I would be a seller of.İşlem kapandı: hedefe ulaştı
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, işlem veya diğer türden tavsiye veya tavsiyeler anlamına gelmez ve teşkil etmez. Kullanım Şartları'nda daha fazlasını okuyun.
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, işlem veya diğer türden tavsiye veya tavsiyeler anlamına gelmez ve teşkil etmez. Kullanım Şartları'nda daha fazlasını okuyun.