Dear Profit Takeover reader,

During today’s Profit Takeover show I shared a very important point about protecting your trades…

I used an example trade in VXX (which I later went over again during the Profit Revolution show) –

VXX is Barclays iPath Series B S&P 500 VIX Short-Term Futures ETN – which just made a HUGE error with bond sales, resulting in a $590 million loss…

I think VXX is heading back below 25 by the end of the week, so I walked through a bearish spread.

I don’t want to be naked long puts…

So it is important to hedge.

I may have invented a term this morning: “the spreadge” – or hedging a spread…

When I think I might not get the exact benefit I’m expecting on a trade,

I need to have covered positions –

Especially with volatility as wild as it is lately.

So I want to hedge a spread to cover the other side and cushion any potential loss.

When it goes live, watch the replay right here to see me walk through this spreadge in VXX…

I also wanted to give you a preview of tomorrow’s Profit Takeover show…

This is what happened during a single day drop in XIV – VelocityShares Daily Inverse VI –

It dropped almost all its value in one day…

And traders can get into a lot of trouble if they aren’t careful –

Even market makers didn’t see this one coming.

So make sure you stay tuned to tomorrow’s show and I can explain how to avoid losses like these.

Until next time,

Mark Sebastian
Founder, Profit Takeover


Yellow Traffic LightLast week, I mentioned my yellow light was yellow but looking a little reddish…

And today it’s still wildly volatile so I am keeping it yellow for now –

VIX is at 21 as I am writing this, but has been slightly up and down all day so far…

VXX is still trading at a huge premium to cash and is all over the place today – touching above 30 and now down to about 26…

I’ll also be paying attention to whether they list SVIX this week –

If that happens, we will want to pay close attention to VIX futures.


Tuesday 3/29: 10:30 am-11:00 am Profit Takeover

Wednesday 3/30: 10:30 am – 11:30 am Profit Takeover

Thursday 3/31: 11:00 – 11:30 am Foundations of Trading Preview

Friday 4/1: 9:30-10 Profit Takeover


  1. Apple Inc (NASDAQ:AAPL)

AAPL has been up and down all day and is currently at around 174…

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AAPL could be due for more of this little rally.

  1. Energy Select Sector SPDR Fund (NYSEARCA:XLE)

Energy names are soft today – XLE is at 76 while I write this…

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I’ll be taking a look at XLE today during the Profit Revolution show.

If they get too soft, we will hop in and play long here.

  1. Tilray Inc (NASDAQ:TLRY)

TLRY pulled back after a monster week but is heading up past 8 right now.

Image from

We could see more follow through here.


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