VXX AH pricing is out of whack. TVIX, UVXY not affected. Any clues anybody?

Very insightful discussion. Thanks all.

@david-moadel couldn’t agree more. Hopefully, the market is starting to see that there is a legit floor that was tested several times today. On SPY, there was a series of lower highs, but also a series of higher lows. Thinking we retest these lows one last time before heading higher. But, who knows? Best not to try to predict, but just observe…[Read more]

Oh, one more question, sorry: If you are shorting a spike, what’s the purpose of selling the OTM put? It only degrades the profit potential. If you have high confidence in the downtrend, seams a bit of a waste. But, if you aren’t quite sure if you’ve hit a home run, then I can see how selling the OTM put will ease the pain a bit. With VXX and…[Read more]

Thanks @david-moadel. For the purposes of shorting a spike, do you recommend using an expiration date closer in like March 16, or do you recommend going farther out, like 3-6 months, as mentioned in your original post. Thanks.

@david-moadel would you mind explaining the vertical put spread for VXX in more detail? Would the ITM and OTM be of the same expiration date? Can you give an example using today’s VXX spike? Thanks.

Thinking $SPY could go for a gap fill tomorrow at 283.36 before reversing and heading higher. Reserving 60% of available short vol capital for now.

I dumped my XIV. Rebuilding with VXX so I can ride this one out with some actual decay.

Thanks for the insight Seth and Alex. Much appreciated.

hoping for some kind of end of day relief. This kind of price action is hard to watch.

I think the sustained VIX has more to do with the distance $SPY is now from the 10 and 20 DMA. You saw it this morning when $SPY briefly dipped and yet VIX disproportionately spiked. It was very apparent that traders are immensely fearing a green to red reversal day. Turned out to be a false alarm but the true nature of the fear driving VIX right…[Read more]