As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price.
Trade Alert - (XIV)- BUY
Buy the Velocity Shares Daily Inverse VIX Short Term ETN (XIV) at $21.79 or best
Opening Trade
1-7-2015
Portfolio weighting: increase from 10% to 20%
Number of Shares = 459 shares
You can pay all the way up to $22.50 for this Exchange Traded Note and it still makes sense.
The (XIV) is now within a couple cents of its 2 ? year low. The slightest short covering rally in the S&P 500 could deliver an instant 25% pop in this ETF.
As this is a mathematical contract, the downside risk from here is very limited, as long as we don?t have a flash crash in the next couple of days.
I?m betting that sometime in my life, the Volatility Index (VIX) will trade below today?s $24. In fact, I expect it to trade back to the mid teens within the next few weeks.
Once we get through the New Year?s rebalancing?s, volatility should settle down. The surprise North Korea nuclear test has given us an excellent entry point.
For a detailed description of this 1X short volatility ETN please click here for the issuer?s website at http://www.velocitysharesetns.com/xiv
Here are the specific trades you need to execute this position:
Buy 459 shares at????.??$21.79
Net Cost:???????????????????$10,001.61
