The more aggressive PRO Portfolio will be taking a position in VXX calls on any move to new daily highs on VXX. VXX closed yesterday at 40.52, opened today at 41.78 and has risen as high as 46.30 before taking a pause. Fibonacci targets are into the 70's to the high 90's as per the VXX Intermediate Term chart. That is too juicy an opportunity to not be on board, at least with a token position. The Jun 18th $50C is trading at about $5 and offers a 10X increase in a "worst case basis" for the market. I'm happy with a 3X increase, so there is a lot of room for the Fib extensions to be off. In any case, if today's high of 46.30 gets taken out, the PRO portfolio will be buying the Jun 18th $50, or $55C, whichever is closer to $5.00. We are going for the long ball on this one, which means a strike-out is also on the table. Risk:Reward is always weighted toward reward in a Wave 3 down, i.e., a 100% loss vs a several hundred percent gain.
