VXX Weekly Options Traders Look to Pin Down More Losses

Weekly call and put traders are focusing on at-the-money VXX options

Jan 31, 2017 at 1:41 PM
facebook X logo linkedin


In keeping with its usual trend, the iPath S&P 500 VIX Short Term Futures ETN (NYSE:VXX) has been having a rough go of it on the charts lately. VXX shares touched a new all-time low of $18.89 on Friday -- and while the CBOE Volatility Index (VIX) spiked to start the week, VXX remains pinned below its descending 20-day moving average. Against this backdrop, a number of weekly option traders are betting on VXX to continue its decline through Friday's close.

In the option pits, the weekly 2/3 19.50 strike is home to heavy open interest for both puts and calls, with 13,705 puts and 7,734 calls outstanding. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) confirms sell-to-open call activity at this strike yesterday, as well as buy-to-open put activity. This indicates option traders on both sides of the aisle are betting on a continued retreat for the shares, which happened to close squarely at $19.50 yesterday.

Taking a broader look at VXX's downtrend, the shares have dropped nearly 84% from their February highs above $123. VXX's 20-day moving average hasn't been surmounted on a daily closing basis since early November, just before the post-election Trump rally kicked off.

At last check, the iPath S&P 500 VIX Short Term Futures ETN (NYSE:VXX) was trading up 1.7% at $19.83 -- easily within "pinning" distance of that popular weekly 19.50 strike, and more than 5% below its 20-day moving average.

170131VXX


Let us help you profit from market volatility. Target big gains in short order with a 30-day trial of Schaeffer's Weekly Volatility Trader!

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI