Wednesday Update: VXX Calls


Friday is November monthly options expiration (third Friday in every month). Noteworthy is the fact that after November expiration we will only hold puts for stocks and stock indices. 

Also expiring will be the Long VXX call position, the November $34 calls, up close to 300% as I write this.  Since the VXX model is still Long, assuming you are still in at least a partial position, rollover those calls into the Nov 30th $38 (or $39) calls. I'm skipping the Nov 23rd calls because next week is shortened due to Thanksgiving. If you are out of VXX totally, initiate a new position.

We want to own VXX calls for so long as we can justify it. My pattern recognition analysis a/k/a The Elliott Wave Principle, suggests the markets are entering into Wave 3 of 3 down, If there is a negative market event, it will take place in Wave 3 of 3 down. There is no guarantee that will happen, or that my interpretation is correct, but so long as I may be right, it would be better for your accounts to have some VXX calls, than not.