Subscribers narrowly missed buying some Apr 21 15 calls for 0.60 that doubled before the day was over, but it’s okay to keep trying. The options traded for as little as 0.70 on Wednesday, down from 2.70 in late March, before rocketing to 1.40 in under two hours. No question, these pups can get pretty wild — just like the underlying VXX. Since I will never, ever suggest paying up for options, you’ll need to be patient if you intend to buy on weakness. You can see why there’s no rush: The long-term chart (see inset) suggests VXX could fall to as low as 13.79, the ‘secondary’ Hidden Pivot support of the pattern shown, before a good bottom is in. There are no guarantees we’ll catch the low, and we could even find ourselves choking on dust and position-less if this vehicle pops above the labeled 19.06 ‘external’ peak. By then, it would be too late to get aboard, although we may be able to find an entry opportunity before then by focusing on the lesser charts, camouflage-style, or possibly on the intraday charts of the option itself. In the meantime, we still hold two April 7 16 calls from an original purchase of 16 (or multiple thereof). Realized gains so far total about $1494. I’ve advised holding them till Friday, when you can sell them at will.
