October 31, 2014

Bull Put Spread in UVXY

We’re starting to see overbought readings hit in several of the major indices and international ETFs.

My only hesitation at this juncture is the incredibly low volatility in the market. As I stated a few days ago, options premium has reached an 8 year low. the VIX is hovering around 12 and VXX and UVXY are in an extreme oversold state. As a result,  I had to take advantage of the “very oversold” reading in volatility today by placing in UVXY using a bull put spread. The set-up was just too perfect to pass up. And while the trade might be a success (no trade is guaranteed) I could not ask for a better set up and entry. We will see soon enough how this one turns out.

5-22-2014 9-06-28 PM

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  • Ean

    I subscribe to Options Advantage. It seems you have different recomendations I should be looking out for from different sources. Can you please explain your different services and which subscription covers which?