Trade Alert - (VXX) August 8, 2017
When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.
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Trade Alert - (VXX) - BUY
BUY the IPath S&P 500 VIX Short Term Futures ETN (VXX) November, 2017 $20 calls at $0.54 or best
Opening Trade
8-8-2017
expiration date: November 17, 2017
Portfolio weighting: 2.5%
Number of Contracts = 185 contracts
This is a bet that the (VXX) will rise sometime in the next three months.
It is also a bet that this will happen quickly before time decay eats up the value of our position.
This is a high-risk unhedged trade so I am going in with only a 2.5% position.
The (VXX) only needs to rise $4 to $15 for the value of this position to rise 50%, and $6 to $17 for the value of this position to double in value, as long as this happens in the next month or so.
Going deep out-of-the-money also minimizes the cash up front we need to pay for this position.
You would think that adding this trade after the Dow Average has risen for 11 consecutive days would be a fabulous idea. But so far, everyone who has done it has been wrong.
This can also be a great hedge for any long positions we may want to add in the coming weeks, such as in financials.
Taking an aggressive "RISK OFF" position with the Mad Hedge Market Timing Index well into "SELL" territory at 66 is also not a bad idea.
Don't pay more than $0.65 for this position or this risk/reward will tip against you.
If you can't do options, then buy the (VXX) outright for a short-term trade.
Today, fire insurance is on sale.
To see how to enter this trade in your online platform, please look at the order ticket below, which I pulled off of Interactive Brokers.
If you are uncertain on how to execute an options spread, please watch my training video on "How to Execute a Vertical Bull Call Spread"??by clicking here at https://www.madhedgefundtrader.com/ltt-executetradealerts/.
You must be logged into your account to view the video.
Please keep in mind that these are ballpark prices only. There is no telling how much the market can move by the time you get this.
Be sure you've signed up for our FREE text alert service. When seconds count, this feature offers a trading advantage. In today's market, investors need every advantage they can get.
The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you.
The difference between the bid and the offer on these deep in-the-money spread trades can be enormous.
Don't execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile with only 13 days to expiration.
If you don't get done, don't worry. There are another 250 Trade Alerts coming at you over the coming 12 months.
Here are the specific trades you need to execute this position:
Buy 185 November, 2017 (VXX) $20.00 calls at......................................................................$0.54
Net Cost:....................................................................................................................................$0.54
