Thursday, March 22, 2012

Buy VXX

Yesterday VXX broke the low made mid last year.  That means the market is extremely optimistic, but to me it signals at least a medium term correction of the recent rally.  There is not much downside but the upside potential is huge if it bounces half of the recent drop.  I bought some VXX at 18.8 and some 19 April call at 1.5 and 1.4. If it really bounces to 34, the option will worth 17, that is 10x profit.

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