The VXX Daily Stochastic is on the verge of triggering a Buy Signal. The past two signals are on the chart below and suggest anywhere from a 15% to 30% VXX spike should the signal trigger. Over the years this particular trade has exhibited two consistent characteristics: (1) You snooze, you lose: Most but not all VXX spikes collapse completely in 3-5 trading days. Overstay your welcome and gains turn to losses; (2) That said, on occasion the gain on this trade is massive. The February 21, 2020 Buy Signal took VXX from 14.90 to a high of 78.84 on March 18th. The gain on the March $15C trade was 3,645%. I'll back later if it looks like the stochastic will trigger. Best bet for the option is the March 19th $15C - but that could change if VXX starts to run.
