Fear has reached an epic level on Wall Street. Every one is running scared. Volatility is through the roof.
But as the fear reaches these insane highs, investors may begin to buy the blood in the streets, as we’ve learned from Baron Rothschild. Believing the Fed will not allow the blood shed to continue much longer before elections, volatility could decrease, and markets could rocket back north.
Consider selling to close the second half of the VXX December 2014 33 call today for solid gains. Once you close that, buy to open a small number of the VXX December 2014 36 put up to $6.00. Don’t risk the house. This new recommendation does carry some risk as the blood continues to flow in the streets.
Hold all other open positions.