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.
Trade Alert - (XIV)- BUY-DOUBLE UP
Buy the Velocity Shares Daily Inverse VIX Short Term ETN (XIV) at $71.77 or best
Opening Trade
8-18-2017
Portfolio weighting: increase from 10% to 20%
Number of Shares = 140 shares
With volatility trading at the highs for the year, I am going to double up my short play through buying more of the (XIV).
You can pay all the way up to $74.00 for this Exchange Traded Note and it still makes sense.
I'm betting that sometime in the next few weeks that the Volatility Index (VIX) will trade below today's $15.90 high. In fact, I expect it to trade back below $10 within the next few weeks.
If I am right, then there is a potential 35% profit in this position.
If I am wrong, then Armageddon is about to hit and you won't care about your stock position anyway.
Remember that today is an options expiration day, a good time to close out positions.
Also, you get a huge embedded tailwind with the (XIV) with the massive contango in the Volatility Index (VIX), the differential between front month and far month volatility.
After spending the year stuck in in the $9-$16 range, it is nothing less than mind blowing to see it spike up to $15.90 right now with a minimal recent move in the S&P 500 (SPY).
That has taken the (XIV) down from a nosebleed $97 to a low of $71.
This is a not a leveraged ETN, so even if volatility remains heightened for a while, the downside risks will remain small. As an ETN, there is also no expiration date to worry about.
There are no options on the (XIV), so this is one of the simpler ways to play for a (VIX) collapse.
For a detailed description of this 1X short volatility ETN please click here for the issuer's website at http://www.velocitysharesetns.com/xiv
The learn more about the Volatility Index (VIX), please click here for "Volatility Here is Peaking" http://www.madhedgefundtrader.com/buy-flood-insurance-with-the-vxx/
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 this ET in the middle market and waiting for the market to come to you.
Here are the specific trade you need to execute this position:
Buy 140 shares at............................................................................................................$71.77
Net Cost:........................................................................................................................$10,047.80
