|This Trade Was Closed February 10, 2012|
Closing this day trade at $20. 25% gain in one day! Gotta pat myself on the back for calling this one
Original Trade Post:
Long volatility with this 2X VXX ETN.
Per my trade long IWM puts, I have been noticing large amounts of puts being bought in the near month expiration contracts of the IWM and SPY. This is lifting implied volatility market wide.
I jumped on board of this trade at 16 per share late today as I noticed a series of higher lows and higher highs, marking a bullish trend reversal in this security. See the chart notating the series of higher lows, higher highs, preceded by a bullish harami candlestick, and a bullish ROC divergence.
Will be watching closely for weaknesses in the momentum surge to take profits and will have a trailing stop at the 50 period EMA – currently at $15.50. Conservative PT is 17.50.
This trade may last only a few days so be watchful.
- The Ticker: TVIX
- The Trade: Buy at $16
- Target Price: $20
- Trade Opened: December 13, 2011
- Trade Closed: February 10, 2012
Chart courtesy Finviz. Click to open in larger window.
Additional Image Provided by Terrence:
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