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Stock Market Options Trading
Buy The Dip with SPY Call Options Using VXX
Mar 6, 2020
Discover how to capitalize on market pullbacks by buying SPY call options after volatility spikes. The discussion highlights a strategic approach using VXX as an indicator for timing your trades. Analyze historical win rates and explore essential risk management techniques to maximize profits. Tune in to learn when to get long in the stock market for potentially lucrative outcomes!
11:14
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Quick takeaways
- Utilizing VXX to gauge volatility trends can strategically guide traders in timing their purchase of SPY call options effectively.
- The studied trading strategy demonstrates significant profitability, highlighted by a 60% win rate and an impressive overall return on capital of 226%.
Deep dives
Buying Call Options After Market Dips
Purchasing call options on the SPY after significant market dips can be a strategic approach to capitalize on potential recoveries. A significant detail in this strategy is using the VXX as an indicator for volatility trends, which typically rise during market pullbacks. The methodology involves waiting for the VXX to cross back below its 10-day simple moving average, signaling a potential stabilization in volatility. This timing is crucial for determining when to enter trades and can help traders optimize their buying opportunities.
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Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode