The stock market gave up its retracement rally gains with hardly a whimper overnight and today is starting off with yet another test of the Jun-Sep lows. The test is doomed for failure as new YTD lows across all indices are due well before October options expiration. UVXY The above 120 minute UVXY chart includes a new Fibonacci extension projection for the next 2-3 weeks. The current Oct 21st $10C, bought on Sep 16th, is now deep in the money. Better leverage is available with any out-of-the-money calls on the table below: Note that all of the out-of-the-money calls are outperforming the in-the-money calls and that there is still more than three weeks left until Oct 21st expiration. That leaves a lot of time and price advance still to go, as reflected by the Fibonacci extension tool placed along the right axis on the above UVXY chart. A UVXY move into the low to mid 20's in the next 23 days could generate a 7X-10X return on any of the mid-teen strikes. The sooner this kind of move begins, the higher the projection becomes for Oct 21st.
