Today's rally has blown-up VXX time premiums to where the VXX near-term calls are becoming very cheap. That doesn't in and of itself make for a trade, but these two stochastic patterns do: (1) The hourly stochastic is extremely low (3.46:4.37 - see data window in upper left of chart), and, (2) The stochastic is primed for a pop-out above oversold (>20.00). If that happens anytime in the next 48 hours, we will be buying the Apr 17th out-of-the money calls (hopefully under $2.00). The only caveat is that there are just 8 trading days left before Apr 17th expiration (the market is closed this Friday in observance of Good Friday). Going out an extra week or two could make those calls too expensive. Accordingly we are day-to-day on this potential VXX trade.
