VXX Analysis for Short Term

Hitting 66 dollars. Looking for a 50% Retracement on that!

So,
I bought the 9Feb18 45 Puts for 2.60, looking for steep drop to 50% retracement and support. No other info or research. Somebody chime in. FLDs have target to 33ish in my opinion. I think it hits that yellow support line very soon, dont you guys? I have a Limit order to sell at 8.00, OTM weekly trade good enough. IF it struggles at 37 dollars, I will sell at market.

You gampling soul you are. Volatility should contract, don’t think we are in the crash mode yet and support should hold at list for while. Your trade is probably good. Not my cap of tea , good never the less . Much more fun than sitting in cash for the next several month, my humble and boaring choice.

My philosophy with VIX products is to treat them like a lotto ticket. I’ve held onto my UVXY watching it go down 80% and then up 50%. Maybe it will pay off, but it won’t matter in the long run. As Becker says, the real opportunity is (hopefully) coming up as long as we’re ready.

As buy and hold vehicles these instruments are weapons of financial destruction. The pull to zero in UVXY and the recent breakage in SVXY (see my selling vol post) make them very dangerous toys. The short vol products are done and I wouldn’t be surprised if they discontinued the leveraged long vol vehicles soon. Oh well.

One last hurrah for the record