I closed the VXX July 17th, $18 calls for the same reason as the QQQ puts, I see some intraday divergences, small as they are, that should offer a better opportunity to reposition with a longer expiration.
However, as for the core/trending positions in equity longs like UVXY (2x long VXX), I have no reason (no Theta decay) that makes it worth closing these longer term trend positions.
As for the P/L
With a cost basis of $1.28 and a fill of $1.67, the VXX calls that I had hoped to have closed last Tuesday morning at a 50+% gain, still came out pretty well in the end at a +31% gain precisely because I use these longer dated options, typically about 3 to 4 times more time than I "think" I'll reasonably need.
This is also why I want to re-open these positions if possible with a longer expiration as July 17th is creeping up fast. As for the long equity positions (VXX and UVXY), I have no reason to close those as they are meant to be longer trend-based trade ideas, UVXY is currently doing well at a gain of +8%.
The charts...
This is the intraday 1min VXX chart with last week's/Friday's leading positive divergence near term and this morning's little lack of confirmation which is no bother for the equity long (UVXY), but for the options/calls, it's a little more important very short term and may give me the opportunity to book the gains as well as open a new position with a longer expiration.
Here's a closer intraday look at VXX 1 min and an intraday (small) negative divergence.
This is the 2x long VXX, UVXY intraday, also with a small intraday negative divergence, as well as Friday's ;leading positive pointing to near term upside. However the longer charts are pointing to trend upside.
VXX 2 min, still near term with an excellent leading positive divergence
with what I believed/believe is a head fake move as posted in this update from last week, VXX - VIX Futures Follow Up.
Here's the VXX daily chart and the head fake under a clear range/support area in yellow as posted last week here,
VXX - VIX Futures Follow Up with the confirmation/accumulation on the chart above this one in the same area,
but today's price movement back above the lower range trendily and right back in to the range with all of the stopped out shares accumulated and all of the new shorts squeezed.
This is the 3 min UVXY (2x long VXX) showing the same confirmation on a longer 3 min chart.
And the overall bullish VXX 5 min chart with a nice accumulation zone n the area of the range and a strong positive divergence at the head fake/stop run below the range where smart money can pick up stopped out shares not only on the cheap, but in size without anyone questioning or paying attention to what they are doing. Most technical traders think a breakout on volume is smart money buying, THEY DON'T CHASE PRICE, THEY BUY ON THE CHEAP WHERE AND WHEN NO ONE IS LOOKING LIKE THE ABOVE. Thus the idea is , we do the same.
VXX 10 min with an excellent 3C confirmation of the price/3C trend to the left as 3C and price are moving nearly tick for tick and the very obvious 3C positive divergence to the right on a strong timeframe.
VXX 15 min showing confirmation, a negative divergence with price following lower shortly after , confirmation and a leading positive divergence.
Today's price move looks a little parabolic and as you know,
despite loving the charts in VXX, I never trust parabolic moves, even with a strong leading positive divergence.
As for the actual VIX futures (VXX is VIX short term futures/ETF)...
/VX
(VIX Futures) with last week's leading positive (short term) divergence and today's slightly negative 3C action, thus my moves with options, but leaving longer trending positions be.
/VX VIX Futures 30 min with several positive and negative divergences
These are the longer term/stronger underlying trade charts such as /VX 60 min with obvious divergence and a leading positive to the far right,
in line with a longer term/primary trend move up in VIX and down in the market.
Even more telling, the Daily /VX-VIX futures chart which has a very obvious leading positive divergence to the right, VERY strong right at the same area as the SPX head fake/Fallse/Failed breakout move in May.
As you can see, I have very little reason to close non-leveraged or less leveraged (UVXY 2x leverage) positions vs. the 100x leverage of options with near term expirations (July 17).
ALL IN ALL, VXX/VIX FUTURES LOOK GREAT, THE MARKET NOT SO GREAT.
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