I guess all this suggests that a break of $1257 on S&P followed by a panic slide to 1220 as all stops get hit will be a unique buying opportunity. I have already borrowed some more cash from the credit cards so as to buy at least $5K worth of VXX puts if S&P drops to 1220 and VIX spikes into high 20's. These puts should triple in about a month, just like the VXX puts I bought during the climax of the Japanese scare in March have tripled in a month.
David - I completely agree with that trade. It's almost too good to be true, but VXX is such a dog of a trading instrument that unless if we have some sort of calamity, then we can pretty much guarantee that we will see a drop in VXX if it hits 25.
OK, that was cute, and probably true. Just give me a few more points off SPX and.... :)
ReplyDeleteMore bull?
ReplyDeleteThe Mystery Broker Speaks Up
By MICHAEL SANTOLI
"He checked in with a client letter last Thursday offering a "buy alert."
http://online.barrons.com/article/SB50001424053111904113704576383662825699394.html
I guess all this suggests that a break of $1257 on S&P followed by a panic slide to 1220 as all stops get hit will be a unique buying opportunity. I have already borrowed some more cash from the credit cards so as to buy at least $5K worth of VXX puts if S&P drops to 1220 and VIX spikes into high 20's. These puts should triple in about a month, just like the VXX puts I bought during the climax of the Japanese scare in March have tripled in a month.
ReplyDeleteNice find, illini. Another perspective I tend to agree with.
ReplyDeleteECU.TO Not sure if I'd posted that chart earlier, so here it is in case I overlooked it:
ReplyDeletehttp://stockcharts.com/c-sc/sc?s=ecu.to&p=D&yr=0&mn=7&dy=0&i=p99295968853&a=217994610&r=7736
CP - your charts sure are pretty.
ReplyDeleteDavid - I completely agree with that trade. It's almost too good to be true, but VXX is such a dog of a trading instrument that unless if we have some sort of calamity, then we can pretty much guarantee that we will see a drop in VXX if it hits 25.
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