UVXY A UVXY breakout above $20.00 was needed before we could even suggest a UVXY $40 was in the cards. We got that breakout yesterday with follow-through today. So far returns on index puts have been as high or higher in percentage gains than in UVXY/VXX calls. That should change as the uptrend in volatility picks up momentum. Every portfolio should own at least some UVXY or VXX calls, looking for quadruple digit returns should there be a market panic. Expiration Preparation Below is a summary of positions recommended in both the PRO and Premium Services that will expire on March 18th. Including today (Tuesday) there are 9 trading sessions left in this expiration series. The precarious nature of unfolding price trends in stock indices (down) and volatility (up) is opening the door for a mega move in the direction of those trends so I am in no hurry to roll-over into April until I absolutely have to. March 18th stock index puts (QQQ, IWM, SPY), and March 18th volatility calls (UVXY, VXX) stand the most to gain by such an event. In other words, if there ever was a time to roll the dice and hold into expiration, this is it. In addition, those strikes are all well in the money now, ameliorating some of the usual risk associated with expiration, i.e., it will take one hell of a market rally for these options to expire worthless. March 18th Expiration: PRO Service March 18th Expiration: Premium Service Nonetheless, there are psychological reasons to give up some percentage gains for the relative peace of mind of not having to stress over a looming expiration. Rolling into April 14th expiration takes the element of time pressure off the table (for a few weeks) and could be the difference in making a wrong decision based on emotion over reason. As of now it looks like we will going into April 14th holding index puts and volatility calls, so it's a matter of when, not if, that rollover occurs. A market crash before Mar 18th could change that, but by then we will be more concerned with which TSLA calls to buy than whether its necessary to still own index puts.
