ATMP trade ideas
VXX - 5/15, 50 strike CALLS - bullish engulfing candle signalAfter an indecision doji candle on April 6, there was a bullish engulfing candle. Technically speaking, this is a strong pattern that only signals a buy if the high of the candle is surpassed the following day (sometimes it takes two days). Today's high of 43.72 went over yesterday's high of 43.66.
If you are learning, the same is true for bearish engulfing candles. you can buy puts earlier based on other indicators, but the signal comes when the low of a bearish engulfing candle is broken.
VXX WATCH BONDS,GOLD & CRUDE R DOWN VXX IS GOING UP 2 SOON 2 NOWATCH THE MARKET, I DIDN'T PLACE ONE TRADE TODAY I DID NOT LIKE THE FEEL OF THE MARKET. I KNEW THE VIX WAS UP & DOWN BY PENNIES. AS OF THIS WRITING IT IS UP .30. KEEP THIS ON YOUR RADAR!
VXX LONG TRADE IF MARKET CONTINUES LIKE THIS NEXT WEEKVXX IS HANGING BY A THREAD! IT'S BE DOWN BY PENNIES I DON'T THINK THE MARKET CAN HOLD IT DOWN MUCH LONGER. THIS MAY BE THE SAFEST TRADE NEXT WEEK. IT ALL DEPENDS ON THE OVERALL MARKET CONDITIONS. DO NOT GO LONG IF THE MARKET IS UP!
VXX hanging in the airVery interesting. Gaps to fill below, but still need another wave up. Have been very quite for past week or two, up and down within 5% range. Probably need a few days to figure out next big move. Ideally, early next week will be the time. Stay still.
VXX wait for this great Short OppurtunityVXX, Not crazy about these trading instruments, but over time they always decline cause of Admin. costs etc, and when or if the Nasty virus begins to dissipate this will be the Best short you may ever get a chance to play, Just be patient...Charts do not work in this Environment, Too much fake money being pumped into the markets, debt issues will make their way into the news feed, while we all Self Lock Down.... Wait for S&P wave 5 down confirmation.
VXXThis would be the possibility if SPY follows the projected model. Comments and criticism are welcomed.
Volatility Round 2I know history doesn't always repeat itself but in 2008 the VIX peaked twice, and we've only seen the first peak in 2020. People are still scared. Wait for good news before shorting VXX.
VXX seems to have formed a fairly strong upward channel touching 6 points.
Thanks for reading.
Trade Idea: Long VXX @ 53.00Throughout this short term reaction bounce yesterday and today, volatility indexes have stayed relatively strong. VXX had a deep gap down on Tuesday but started to trend higher with the market indexes. Today VXX closed green with market indexes. As the short term trend on the market indexes seems to be terminated, I believe as markets start to retest lows, we could see VXX retest highs in the near future.
Long @ 53.01
Stop loss @ 47.25
Target @ 70-75 but start scaling out at 60
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.
