It doesn't matter what the Fed said about what it's going to do, nor does it matter how the market reacts, these movements are transient at best. What matter's for our options is the market direction between now and expiration. Notwithstanding today's volatility, the dominant direction in all market averages is down. Ergo, our default positioning is to the downside, taking advantage of countertrend spikes into Fib windows to add to or initiate new positions. UVXY Below is a Daily chart of UVXY. It generated a Buy @ $14 and is now trading at $16.55. It has been as high as $22.39 since the Buy Signal. As the chart indicates it is now inside the Fibonacci window where this countertrend decline is expected to end from which UVXY will rise above the $22.39 high. Only a breakdown below $15.00 changes this scenario. Trading Position UVXY Feb 18th $15C purchased Jan 19th @ 1.90 currently @ 3.70 (was as high as 9.15) Hold, with a stop, if any, at UVXY 15.00
