Trade of the Week: Major Options Action in Short-Term Volatility

Options, Videos, Volatility

This week, the options trade of the week covers a big trade in the short-term volatility ETF. A trader placed a bearish put ratio spread in iPath S&P 500 VIX Short-Term Futures ETN (VXX), a popular method for trading short-term volatility, which is based on VIX futures contracts. A put ratio was executed with VXX at $17.60 and involved buying the December 20th 16 put while selling double of the 15 put. 

The point of this trade is to have downside exposure without spending a lot on premium. It’s generally done by professionals who can handle the downside risk of having a double-short option. For casual traders, doing a simple put spread is the way to go if you believe short-term volatility is going to keep dropping through the remainder of the year.

$500 into $678,906?

If you had followed Jay Soloff’s trades, with a little luck, you could’ve turned $500 into as much as $678,906.

That sounds unbelievable. But you gotta see how it’s possible.

If you can scrounge together $500 in cash, it could’ve been worth a small fortune today.

Check out how it could’ve happened for you, click here.

 

[FREE DOWNLOAD] 10 Simple Rules for Trading Options Like a Pro

[FREE DOWNLOAD] 10 Simple Rules for Trading Options Like a Pro

Follow these 10 simple rules from 20-year professional options trading veteran, Jay Soloff and start earning a reliable extra income from options.

 

NO prior experience needed to master these 10 simple options trading rules. 

 

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