Blue Line Premium Trading Service Open Option Positions - Going into Next Week Six monthly expirations into the year and we have a mixed bag to report. The good news is that TSLA has ignited and from all looks, is just getting started. Below is a post sent out to the PRO Trading Group on Friday morning and it sums up everything I wanted to communicate this weekend, so why rewrite a masterpiece? [Sat AM - Last minute edit - See Addendum at bottom of post] ------------------ Blue Line Trading Service PRO Update - Friday, Jun 16th First, the good news: Note: ATR = Aggressive Stop @ $250.00 Alternate option based stops: 50% Trailing From Best Price or Best % Gain Next, the not so good news for the big picture: Highest Fear & Greed Index in two years. Note market action around past peaks. We will probably be back long VIX calls by this time next week. CNN Fear & Greed Index - Link Finally: Two weeks to July 4th holiday week July 4th is on a Tuesday, which pretty much makes the whole week a holiday week. I expect our PRO positions will look a lot different in the next two weeks, either going into or out of the holiday. For now, stay day-to-day looking out for system signals and/or stops to guide our actions. ------------------ Sat Jun 17 - Weekend Update Addendum The above PRO Alert was posted Friday morning. VIX went on to decline into Friday's close to match its lowest print of the week at 13.48 and in fact, the lowest print since late February, 2020. Those lows, the week of Feb 14, 2020, preceded the covid crash of March 2020, in which VIX spiked to 85.47...fast. Trades Pending Between the Fear & Greed Index at severely overbought levels and VIX nearing its pre-covid crash lows, the next signal to be watching out for is a VIX Buy Signal, which we will be following on the Intermediate Term trading model in the Premium Service and Shorter-term trading models in the PRO Service. Note the Buy Signal on Feb 24, 2020. It came on a gap-up on a Monday. Since the market is closed this coming Monday, we will be laser focused on the open on Tuesday...and every day subsequent for VIX Trend Model Buy Signals, in every time frame that matters. Potential gains are 10X basis Sep VIX calls and 20X basis Aug 2023 calls on an average VIX run higher into the 30's. A repeat of March 2020 (VIX into the 80's) and returns on Sep far out of the money calls have the potential to be up 50X, i.e., a summer to remember. ------------ VIX Buy Signal Pending
