This will be very quick before I head out to play poker, which is sort of appropriate for talking about our volatility trade (VXX).
Virtually everybody should have made money on this trade. The question to ask if you still own the calls is what now? Do you take the big profits to close out the week and see what happens or do you let it ride into another government shutdown week?
Nobody can tell you what to do here. The best I can tell you is what I did. Remember though, I manage money for other people, so I have to be very careful about "letting it ride."
I am now completely out of the VXX trade. I have close all positions for substantial gains in whole. The puts were profitable. The $27 calls were a little profitable and the $32 calls are profitable. It wasn't a homerun, but it was a double for sure.
I now have that money to do other things with. I am looking at energy and some tech. If you aren't overweight in energy, read this:
Encana (ECA), SPDR Oil & Gas Exploration & Production ETF (XOP) are both at the top of my list right now. I still like the Alerian MLP ETF (AMLP) quite a bit with that nice dividend and undervalued asset base.
Catch you tomorrow. Send some questions.
Disclosure: I am/we are long XOP, ECA, AMLP.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: I own a Registered Investment Advisor - https://BluemoundAssetManagement.com - however, publish separately from that entity for self-directed investors. Any information, opinions, research or thoughts presented are not specific advice as I do not have full knowledge of your circumstances. All investors ought to take special care to consider risk, as all investments carry the potential for loss. Consulting an investment advisor might be in your best interest before proceeding on any trade or investment.