ATMP trade ideas
VXX possible bullish cypherVXX 15 min chart.
.50 B point, 1.272 C point, looking for reversal at .786 D point at VXX 19.50
VXX bottomed out?The VXX trend looks like it might have found its bottom. Note that it has a more rounded lows (not sharp), the recent low is higher, and the RSI is on the rise.
The VVIX is also on the rise and holding at the trend line.
$vxx falling wedge? election drama and rising coronavirus caseslooks to be oversold & may be making a move higher to break through the falling wedge.
VXX Going for it!MACD crossed green, Stochslow crossed green, RSI about to push over 50. Looking for that 50 EMA test then 100 EMA or a break below 22. Must hold 26 for the possible upside.
VXX back to major support trend lineThat was a fast drop right back to the major support trend line. Will it drop lower or rally off?
VXX trend line updateLast updates after yesterday's action. Really likes to respect those trend lines I have.
VXX options play 11/06 expiryVXX $27 straddle 11/06 expiry is going for $545 ($5.45) at 3pm. Good luck and happy trading friends...
VXX is rallying up today and its not over yet Futures were all red from Sunday evening leading to over a 2% loss across all major indexes. COVID-19 cases are reaching a new all time high, new lockdowns are being enforced worldwide, the stimulus deal has still not been passed and finally elections are next week. All of this is a perfect recipe for high uncertainty. The VIX reached new session highs on Monday but its just getting started for this week. Key metrics to watch are the RSI and MACD which are both reaching overbought levels. VIX will reach its peak for this week once RSI level is above 780 and the MACD stays above 1. This is a good call spread opportunity. Good Luck.
Nov Hedge: VXX Calls - 20 Nov expiryI've been thinking of ways to hedge my trades to mitigate risk as my trades are mainly naked sold options contracts. This CALL trade is the first live trade of a hedge theory I came up with. If everything goes well this should expire uneventfully.
This Trade is paid for using 15% of the total Premium from the 2 other Nov naked option trades.
I bought the strike price as the previous 2 VXX spikes was between 40-50%.
Nov Trade structure
Trade 1 - SLG sold PUTS is aligned to the larger market direction (Bullish) and is the trade with the largest BP usage (40%). In this case, I did not utilize the full 40% as there was no reason to with my 5% monthly target
Trade 2 - JETS ETF sold CALLS is opposite the market direction with a utilisation of 25% BP
Trade 3 - Is the hedge. This VXX bought CALL is opposite the larger market direction and is funded from 15% of Trade 1 & 2 premiums
I have left 25% BP free in case of margin usage
Scenarios
If everything goes well, my Hedge should expire uneventfully and I keep the premiums from Trade 1 & 2
If things go bullish, Trade 1 will be good, Trade 2 will be at risk, Trade 3 will be uneventful and Trade 1 will lower the loss of Trade 2
If things go bearish, Trade 1 will be at risk, Trade 2 will be good, Trade 3 will be good and the returns of Trade 2 + Trade 3 will lower the loss of Trade 1
It's not full risk coverage but the aim is to mitigate risk. Let's see how this goes and I'll continue optimizing this.
VXX still finding supportVXX still bouncing off that support line.
Close up
Larger view for trend line origins
VXX holding steady on support levelVXX hang in there and staying right on the support level. MACD starting to move from green to red, which means a drop may be coming. I am still have this gut feeling that it wants to drop to the bottom of the trading channel before we see it make a big rally.
Just in case you care where my trend lines originate from. Not a good view for seeing details.
Getting pretty oversold on the 1D time frame and the MACD is getting close to switch form red to green.
Hope this helps and good luck.
VXX trend line updateUpdate after Tuesday's trading. It may have found a bottom. Be interesting to see if it is ready to break out.
Close up
VXX trend lines and channels - Has the fall stopped?VXX has been falling hard the last week. Riding down and jumping around on the trend lines. Currently touch the last major S/R from end of Feb. Is this going to be the end or will it drop a little lower to the bottom of the channel before rallying?
$VXX 10.7 FOMC TRADE VXX 9 OCT 25 C LOOK CHEAP HERE @ 0.29 C. I believe this is coiling for FOMC and the Bulls are getting traped in Indicies. Let's see what the FOMC news brings at 2 pm.
DYOR
