VXX - The UndertowThe Vixx, or volatility index- used as a hedge against downturns in the SPY, Where the spy hit the previous high, the VXX turned appropriately with as the spy touched the price top the vxx did not hit previous lows,
The ride continues, consider the gan box at previous highs, before considering more extreme levels.
SPY did not hit above the mark and is down, and for now lowest has been hit
ATMP trade ideas
VXX short prep time #5VXX short prep time #4 didn't happen since we didn't really get to the resistances. But we have satisfied the downside target as outlined in the idea. This means, we need to start looking for the next set of resistances.
In this case, I am actually going long VXX into the 34 resistance because of how the indicator is forming higher lows, while price is just hanging around. This to me, implies bullish behaviour
Of course, at the yellow resistances, I will start initiating short positions. But in this case, I am going small size since the broader markets seem to be in a pretty interesting position
VXX - Some 'pre-tection' -a nice day to trade!
-Have a few open positions, will use AMEX:VXX to gain some downside protection
Other reasons including:
- a juicy skew
- China(always a reason :D?)
- no really China, their currency MOEX:USDCNY OANDA:USDCNH has weakened +- 7/8% in 3 months (nice correlation with OANDA:XCUUSD at the moment though)
- Israeli airstrikes (maybe think about some war stocks)
- JGB's move today (10y)
- wishfull thinking but a little blowout like Jan/Feb...? I'd take 5 pointer thanks
- Interesting volume profile as well (RHS)
How to Utilize the $VIX as a HedgeWhile the $VIX is a volatile index by itself, containing derivatives that can be fun to trade individually; it can also be used as a valuable hedge against a range of portfolios. While I had a tech heavy portfolio the last month and a half, I took tremendous short term gains anywhere between 10 and 15%. While holding the $VXX ETF to mimic movements of the $VIX, I used this derivative to hedge against sharp downfalls in this NASDAQ.
Over the course of tech making a quick run, the ETF I held took losses of around 20%. This is why it is vital to take a holding relative to other positions - I usually do 1/3 position compared to fulls in my portfolio. This way the losses only really amounted to ~6.5% compared to a full position. Today on 6/19, a couple days after I liquidated all my tech positions (still holding $NVDA), the NASDAQ took a hit and the $VXX ETF is up 8.2% currently. This spike has erased losses to -10% for the position alone (~-3% to a full position) and has actually made me net green for the day even after suffering losses of 2.5% on $NVDA.
Even though the $VIX is extremely risky by itself, I do think it contains great value as a hedge if utilized correctly.
Monday pullback ,picking up later into the dayForgive me, it's getting late and I just wanted to get a projection out before the markets sessions.
Uh, no cryptos on this one, just straight equities market. Watch for VXX to break above 35.00 today. If we hold it, expect the rally(VXX) into later parts of the day.
VXX - Call Credit Spread - Trade Journal After the fact. Personal trade record. Closed position (limit order executed) today that I opened on 4/3.
Opened on 4/3 for $1.40 credit
CREDIT: $140
MAX POTENTIAL LOSS: $500 - $140 = $360
44 days till expiration, but had no intention of holding till expiration. Ideally, wanted to close position within 25-30 days.
Entered a limit order to close the position .60 debit. Order executed at .57.
13 days actual holding period. .83 profit.