Today my calm-before-the-storm indicator flashed sell so I
am buying VXX. VIX dropped 9% as of
mid-day Friday and VXX dropped about 4.4%. This is a high risk move so it is
for traders only and only with short term trading money. If you should decide
to follow my trade, don’t bet the retirement on VXX. It is an options play that will lose money
over time if VIX stays unchanged. That’s
because as options expire, more expensive options are purchased within the VXX
ETF. The rationale for this move is
explained in last Friday’s blog post.
