Once again, we scoured the charts looking for opportunities to force trades on a day when the markets were brain-dead. A ‘momentous’ Fed announcement was due out, and stocks were even more turgid than usual. Even so, we were able to position ourselves to get short in VXX using put options. The trade did not trigger, but the set-up we used is repeatable and explicitly detailed. It required only a smattering of options know-how, and no knowledge whatsoever about the concept of “fair value.” (Please note: Due to a technical glitch, the video portion of this recording was lost for about the first ten minutes.)
