ATMP trade ideas
BTO Jun19 1 46, -2 43 & 1 42 Put BBWB (Backwards BWB)Opening: Backwards Broken Wing Butterfly (thanks @NaughtyPines for the strategy idea)
debit = 1.26
VXX spot $46.32.
Theta = -.136
Breakeven around 44.60.
Max p / l 174 / 126.
No downside risk with profit (at expiration) of $74 with spot below $42.
We cannot tell the future but am thinking This "Volpacalypse" will roll back at some (before June?) point.
If this works it will hedge some call credit verticals that are currently in the money and on the
"roll till scratch/profit list.
Short VolatilityCash Vix near 2008 levels with bearish divergences on the 3 hour charts. Although VXX is the futures S&P vol ETN, it should replicate the premium compression which we're looking to capture.
VXX - Impulse leg target $30.80With the VIX back at 46 this morning VXX is trading $30.40. The impulse leg that marks the beginning of this sell-off suggests a $30.80 target which is into this second channel. A break of 50 on the VIX and this could go to resistance in the second channel. Every day for two weeks VXX has been a buy at the prior day close. Market looks like it is going to rests last weeks low. Sharpen your watchlist as the rubber band is being stretched and a snap back will be just as pervasive as the sell-off. On the open we are about net even for the week. Sure feels worse than that.
ROLLING: VXX MARCH 20TH 12/14 TO APRIL 17TH 12/15 SCV... for a .30/contract credit.
Notes: A late post ... . Rolling out in this strength and widening the spread to force a credit. I'm fine with extending duration, so long as I can get something around one-third the width of any widening in credit. Here, it's .30 to widen an additional strike, so it's not quite one-third, but it'll do. The notion here is that it will eventually decay past 12, with the natural question being when ... .
I also added some units (same strikes, same expiry) for 1.66/contract (55% of the width of the spread). You can naturally sell spreads higher up the ladder (e.g., the 16/18), but I'm opting to keep things simple rather than having a bunch of different spreads on at different levels, which can pose trade management problems if you want to extend duration.
Will look to peel off units at VIX lows.
buying vxx volatility ..american index in correction phase soon ..lets to buy some volatility etf in this wedge
VXX ETF Hits Price Target!We wrote an article on our website and posted here on TradingView that the VXX looked ready for a big move to the upside. The VXX has hit the price target we suggested at $22. A more detailed analysis of this trade is on our website titled "Trading ETFs While Volatility Explodes Higher".
VXX looks ready for a move to the upside!For this analysis we overlay our Proprietary Oscillator over the price chart and we can see a pretty large positive divergence. We are looking for price to run up to possibly the $22 range and have written a pretty extensive article on our site.
VXX update. Looks like it's playing out well. Vix above 20 is dangerous. Protect profits and trail stops on this as it like sot make reversals during the overnight session sometimes.
Spot to buy some protection? AMEX:VXX , derivative on CBOE:VIX index suggests that we are in good spot to buy some protection. Market participants are very optimistic in recent days, but coronavirus risks still unresolved. In fact, data from China continues to be rather worrying. If we to start another leg lower in equities, today is a good day for it.
VXX - PT $16.94Finally broke out of downtrend channel in a meaningful way. Impulse leg looks like it could carry to $16.94. Volatility is back!
VXX - Gap filled!Volatility is back and VXX may actually have a little room to run here. After filling the gap from Monday it appears it may be headed up as coronavirus and Fed speak give the market a little scare. Watching the VIX closely to see if it can take out the high from Monday.
OPENING: VXX MARCH 20TH 12/14 SHORT CALL VERTICAL... for a 1.19/contract credit.
Notes: Adding a little to my existing position (same strikes) on this pop. Although it now looks unlikely that we will clear the short call strike at 12 by March expiry given current price and average decay rates, we'll see how it goes. 1.09/contract collected on the first tranche; 1.19 collected on this one. In this particular case, both tranches are of an equal number of contracts, so I've collected (1.09 + 1.19)/2 = 1.14 per contract, so my position break even is the short call strike plus the per contract credit collected or 13.14.
If you did two contracts on the first tranche at 1.09 and three on the second tranche at 1.19, your break even calculation would be /5 = 1.15/contract.
Will look to shed units at 50% max and then roll out for duration and forced credit if necessary to give the remainder of the position time to work out.
ROLLING: VXX FEBRUARY 21ST 14/16 SCV TO MARCH 20TH 12/14 SCV... for a .41/contract credit and for a realized gain of .34/contract.
Notes: My preference would be to roll these down on strength, but staying mechanical and rolling out at 50% max of credit received. Total credits received now at 1.09/contract, so the roll also has the salutory effect of actually reducing setup risk; the max loss metric was previously 1.32/contract, and now it's .91.
To some, the short call might appear "too deep" in the money, but VXX (on average) loses about 6% of its value per month, so it's conceivable that if there are no major pops here that VXX could trundle down to sub-12 in the next 60 days. Naturally, if we do get a pop, I'll add units and go from there ... .
OPENING: VXX FEBRUARY 21ST 15/16 SHORT CALL VERTICAL... for a .33/contract credit.
Notes: My 2020 short volatility starter position, collecting one-third the width of the spread. The natural alternative is to go with the 14/17, which also pays one-third, but I'm not picking a hugely fabulous spot to start this with VIX at 13.85, so going the narrow route and small with the number of contracts.
Will manage this organically: (a) rolling down/down and out as a unit to at-the-money on approaching worthless; (b) rolling out and widening if necessary to force a credit on a pop; and (c) narrowing the spread post-widening when that becomes opportune.
