Subscribers who replicated my game plan over the last two weeks are holding two April 7 16 calls from an original purchase of 16 (or multiple thereof). Realized gains so far would total about $1494. Let’s see if we can do it again, adding to the position with a bid for some more calls of a different expiration and strike. Specifically, I’ll suggest bidding 0.60 for eight April 21 15 calls, good through Wednesday. This trade seeks to leverage the 14.65 downside target shown (see inset). There’s a chance I’ll need to modify the option price, so stay close to the chat room if and when VXX falls to within 0.30 of the target. You can receive email notifications of any such changes in real time by checking the ‘Email Notifications’ box on your account dashboard. _______ UPDATE (Apr 3, 8:28 p.m.): Monday’s whoopee-cushion bounce changed nothing in the technical picture, so we’ll stick with the strategy detailed above. After Wednesday, however, it may be necessary to lower the call bid to discount time decay.
