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Re: DrContango post# 896

Saturday, 06/07/2014 4:09:57 PM

Saturday, June 07, 2014 4:09:57 PM

Post# of 2956
I appreciate your intellect in regards to implied volatility. Timing it, yes, that's the issue. A guide, or predictor is needed. That's why I continue to state the only indicators I've found that gives some insight are the DI - / DI + w ADX, Stochastics, and RSI. I will say that this recent fall In VXX , except for the 1 day pop apx three weeks ago, is the most rapid and sustained decline in strength ( I'm sure you don't subscribe to that term for VXX) I have seen. Although it may not be as steep as when the debt limit debate hit about 8 months ago, it's the amount of time that the indicators I use have been this low, rather amazing to me. The timing of exactly WHEN VXX will pop is, as you say, impossible. But, the probabilities of a pop occurring are much much higher when the tech indicators referenced are at current levels, and probabilities are even higher still the longer tech levels mentioned are this low. It's really just a matter of finite math ( statistics) for me. I know that may sound like trying to describe an apple in an orange grove to you, but it's the guides I know to use in order to put the odds more In favor of a pop. Why do it? Why try that strategy? Why this symbol? Because my friend, when the VXX pops and you have the calls the gains are large, That's the juice.
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