Looking for a risk averse weekend? You can exit calls on profitable stock positions or hedge with calls on volatility. If the former, you know where your 50% stops sit. If the latter, I just bought some UVXY calls to at least carry over this weekend and maybe longer if next week starts off on the wrong foot, i.e., hard down. UVXY UVXY is up over $2.00, which about 15% with a couple hours to go in Friday's session. The chart is warning about a close today anywhere above about $18.00, as it could trigger a mini-panic come Sunday night, taking UVXY into the low-to-mid $20's early next week. Both August and September calls are up nicely so far, with huge leverage paying off on the near term Aug 15th calls. I'm not predicting a Black Monday, but, I am holding enough profitable stock calls from the summer breakout collection that I need some protection, just in case. August 15th Expiration September 19th Expiration Both expirations provide immediate protection against a hard down open next Monday, while the Sep expiration provides ongoing protection for the next 7 weeks, in other words, less leverage, but longer term insurance. Bottom Line: This is a highly leveraged directional bet on a hard down event which may be only getting started right now.
