We hold four June 16 13.50 calls for 0.45 after four June 2 calls of the same strike expired worthless on Friday, socking us with a $180 position loss. I am awed by the power and persistence of the downtrend, which now looks likely to achieve a minimum 12.47, or even 11.26, before VXX can turn around. If and when the first number is reached, I’ll recommend buying some June 23 13.00 calls, but you should save some ammo to buy calls even more aggressively if 11.26 is achieved. Volatility bettors should be pretty shell-shocked by then as VXX racks up a new record lows like an untethered anchor sinking to the bottom of the Marianas Trench. Volatility, or rather the lack of it, has become the stock-market story of the year — an ironic turn of events, since it elevates tedium itself into the realm of the extraordinary. I’ve never seen anything quite like it — and neither has anyone else. _______ UPDATE (June 6, 5:04 p.m. EDT): Amidst tiresome price action in stocks, VXX somehow managed to creep higher. It would take a print at 14.07, however, to generate a bullish impulse leg on the hourly chart, and 14.87 to imply that something more interesting, and perforce sustainable, is happening.
