No Brainer Trade: Buy VXX before Employment #s

VXX is around all-time lows. Vol spike is likely given the important employment report this friday. So, the game plan is to load up on VXX or to buy Strangles now. Cover the whole thing Thur pm or when your profit target is reached.

 

not too bad.

 

You weren't around back at the end of 2006, were you? I hope that trade works out for you.

 

the job report could be bad

spy 112.17

 

If it does, you have to bring him your finest meats and cheeses.

 

Spam and velveeta?..........Prime rib and, and, .....and.......what's a high-end type of cheese that doesn't smell like my gym shoes?

 

If you're looking to trade VXX as a proxy for VIX it might not perform as you'd expect:

VXX "offers exposure to a daily rolling long position in the first and second month VIX futures contracts and reflects the implied volatility of the S&P 500® Index at various points along the volatility forward curve."
http://www.ipathetn.com/VXX-overview.jsp

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2753218>

 

good enough correlation for me. i am just looking for a short-term pop.


p.s. i politely refuse to chew on nazzdack's gym shoes no matter what VXX does

 

i should have said that i don't expect VXX to match % of VIX jump if any. i would be happy to capture a portion of VIX jump. for example, if VIX jumps 10%, i am happy to capture 2-3% move in VXX.