In Feb - March 2020 the weekly VXX stochastic generated rare repeat Buy Signals. The result was a 200% run in VXX in the from mid-February to mid-March. At the time we held VXX calls for most of that period, the second batch put on just two weeks before the ultimate highs: This morning's market collapse has generated a spike in VXX and an initial Buy Signal in the Weekly Stochastic.The first hour of a day like today, with VXX already up over 10%, is a hard trade to take. But it's the other side of hard we are looking for. A 200% run from its low last week of 28.50 would take VXX into the 80's. It's a long shot bet, but its out there for anyone to take for a multi-week run in volatility. Note: A run of that magnitude in volatility would suggest at least a 15% decline in the stock market indices across the board, and in a very short period of time. Puts in market averages will also do very well. VXX Weekly Stochastic Buy Signal @ 34.00 Option: Aug 20th $35C (4.65-4.75) Target: VXX $70-80 --------------------------------------- Alternate $35 Expirations (in order of risk): July 23rd (1.84-1.85) July 30th (2.98-3.00) Aug 6th (3.60-3.75) Aug 13th (4.60-4.70)
