• support@madhedgefundtrader.com
  • Member Login
Mad Hedge Fund Trader
  • Home
  • About
  • Store
  • Luncheons
  • Testimonials
  • Contact Us
  • Click to open the search input field Click to open the search input field Search
  • Menu Menu

Trade Alert - (VXX) October 24, 2017

Trade Alert

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.

Alert

Trade Alert - (VXX) STOP LOSS

SELL the IPath S&P 500 VIX Short Term Futures ETN (VXX)January, 2018 $60 calls at $1.50 or best

Closing Trade

10-24-2017

expiration date: January 19, 2018

Portfolio weighting: 5%

Number of Contracts = 19 contracts

With the last of my "RISK ON" positions gone, there is no reason to continue with my hedge with my long volatility position.

In a normal market, a periodic market would enable to get out of my hedge at cost.

However, we have anything BUT a normal market.

Since I added this position on September 29 the Volatility Index (VIX) has seen its most dramatic sell off in history.

The (VXX) got crushed, plunging some 42.10% from its August high.

Traders have sat in front of their screens, disbelieving and aghast.

So the hedge that I thought might cost us nothing ended up knocking 2.00% off of my performance.

This one position ate up most of my October profit, despite the fact that I got almost everything in the market right.

I am therefore throwing in the towel and selling my position in the IPath S&P 500 VIX Short Term Futures ETN (VXX) January, 2018 $60 calls.

If you can't get my price then cut your limit by a penny at a time until it gets done.

This move takes me to a very rare 100% cash position.

There are absolutely NO low risk/high return trades out there right now. Not a "sweet spot" is to be had anywhere.

But then up 51.80% on the year is not a bad place to be clueless.

This was a bet that the (VXX) would rise sometime in the next three months.

It was also a bet that this will happen quickly before time decay eats up the value of our position.

This position was a hedge, or insurance policy, against our other substantial long positions.

Here are the specific trades you need to execute this position:

Sell 19 X January, 2018 (VXX) $60.00 calls at............................$1.50

$2.57 cost - $1.50 proceeds = $1.07 loss

Loss: ($100 X 19 X $1.07) = $2,033.

 

 

To see how to enter this trade in your online platform, please look at the order ticket above, 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 Vertical Call and Put Debit Spreads by clicking here.

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 close 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.

Share this entry
  • Share on Facebook
  • Share on X
  • Share on WhatsApp
  • Share on Pinterest
  • Share on LinkedIn
  • Share by Mail
https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Douglas Davenport https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Douglas Davenport2017-10-24 11:19:042017-10-24 11:19:04Trade Alert - (VXX) October 24, 2017

tastytrade, Inc. (“tastytrade”) has entered into a Marketing Agreement with Mad Hedge Fund Trader (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade and/or any of its affiliated companies. Neither tastytrade nor any of its affiliated companies is responsible for the privacy practices of Marketing Agent or this website. tastytrade does not warrant the accuracy or content of the products or services offered by Marketing Agent or this website. Marketing Agent is independent and is not an affiliate of tastytrade. 

Legal Disclaimer

There is a very high degree of risk involved in trading. Past results are not indicative of future returns. MadHedgeFundTrader.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of MadHedgeFundTrader.com may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies.

Copyright © 2025. Mad Hedge Fund Trader. All Rights Reserved. support@madhedgefundtrader.com
  • Privacy Policy
  • Disclaimer
  • FAQ
Link to: Trade Alert - (TLT) October 24, 2017 Link to: Trade Alert - (TLT) October 24, 2017 Trade Alert - (TLT) October 24, 2017 Link to: MOT Follow-Up to Text Alerts (SPX)(MGM) Trade October 24, 2017 Link to: MOT Follow-Up to Text Alerts (SPX)(MGM) Trade October 24, 2017 MOT Follow-Up to Text Alerts (SPX)(MGM) Trade October 24, 2017
Scroll to top