MikeL 12:07 pm on Friday, November 15, 2019
Tags: VXXGame ( 769 )

Is this a good time…

Is this a good time to start buying VXX calls? 🙂

Jeff 12:26 pm on Friday, November 15, 2019

A difficult endeavor… since VXX always heads downward (due to compounding) you could buy a strike today that will never be breached again. I have a VIX call spread and I’m probably buying another today since we are at the July VIX lows. Note that at that time, VXX bottomed at 21.41, then spiked to a high of 31.00 in a couple weeks. If you can time it right, a VXX calls or call spreads will work well.
- MikeL 12:49 pm on Friday, November 15, 2019
  
  Jeff, would it make sense to use VIX options instead of VXX?
  - Jeff 1:10 pm on Friday, November 15, 2019
    
    VIX is guaranteed to hit 30 again someday. VXX may never get there again. But I think for short term plays like your January trade, there’s little difference in the probability of one winning over the other.
MikeL 12:35 pm on Friday, November 15, 2019

#vxxgame
Decided to try.
BTO VXX Jan 2021 18/23 call spread @ 1.17
anachronisti 12:49 pm on Sunday, November 17, 2019

I’ve really been eyeing this instrument lately as well and looking for entry. I found this Rick Ackerman guy on Stocktwits/Twitter, who thinks the bearishness in VXX will reverse around $15.66. He’s got a system based on Andrews Pitchfork and maybe some elements of Elliot Wave called “Hidden Pivots.” I’m not a super-technician and really have never looked at any system type stuff, so I’m not advocating anything, just interested to see if he ends up being right about the inflection point in VXX. He’s also applied this same system to Apple with an upside target of $283.97, at which he thinks both Apple and the broad market will turn bearish and correct. I signed up for a free two-week trial (you can basically view his free picks page with a little more detail) and watched some of his free pitch videos, but the service seems really fragmented with multiple subscription fees/types. It seems like a lot of his focus is on futures as well, and a majority of charts I’ve seen are on 60-15-2 minute charts, which I’m not in a situation to take advantage of quite yet. I may dip my toes in on some long calls/puts to see if I can make some money in AAPL and VXX and maybe explore a monthly membership if I strike a little gold.

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