After 6 straight days of being up, the market didn’t just look like it stopped to take a breath, it looked like it was out of breath.
Imagine a punch drunk boxer who threw everything he had and couldn’t even lift his arms up to defend any more.
That’s where I harness the power of the market.
This was my trade:
I bought the VXX at the 26.50 strike for .56.
The VXX measures volatility in the market which is normally triggered by fear.
The more the market goes down, the more fear comes into play.
The VXX is a particularly interesting phenomenon in that the more fear there is, the faster it higher it goes up, like a snowball going down a mountain.
The 26.50 strike is the price I was buying an option to own it at.
The .56 was my risk.
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