UVXY: How to Trade This ETF for a Week-Long Profit
A 60-Cent UVXY Trade to Play Our Yellow Light
See, if my VIX light was determined solely by the futures curve, we’d be red – the curve is in a contango…
But VVIX – another indicator I use to determine the color of my VIX light – is elevated.
This means we’re going to see a lot of days over the next few weeks where we are up or down 1% until the market shakes out.
But in the meantime, I’ve got a trade on the ever-bearish UVXY ETF.
I gave this 60-cent trade recommendation during today’s Profit Takeover show.
Here’s a trade screenshot taken directly from the announcements of today’s show:
This trade is an inexpensive way to go bearish on our yellow-teetering-red VIX light today.
Big Money Is Smooth Sailing into Cruise Lines
We’ve got not one, but TWO big money bullish call spreads on Carnival Corp. (NYSE:CCL) and Norwegian Cruise Line Holdings Ltd (NYSE:NCLH).
These in-the-money (ITM) call spreads are betting on a move higher in the cruise lines.
And I piggybacked one of these trades during my Profit Takeover show today.
This is a screenshot directly from today’s Profit Takeover show. If you missed it, make sure to tune in next time…
Stay tuned for next week’s schedule!
Post-Earnings Airline Plays: UAL & AAL
But we aren’t just looking at the stock’s movement. We’re looking deeper – at the stock’s implied volatility (IV).
And IV is coming off. It rose into the reports… and now, it’s getting ready to drop:
AAL IV 2022
That means options are getting cheap – and it’s a good time to look at some long plays, especially when you consider the big money flow I just told you about.
With travel stocks like CCL and NCLH getting a bid, the travel industry has got room to run.
And a post-earnings play on AAL and UAL may just be the double-whammy you need to take advantage.
Click here to learn more about my post-earnings trading strategy.
- Financial Select Sector SPDR Fund (NYSEARCA:XLF)
All the banks are officially done reporting earnings. Now, we’re going to see where we can find value as IV tanks – and we’re using my post-earnings strategy to do that for the rest of the week in the Profit Revolution trading room.
Want a hint? We will be looking long.
- Pfizer Inc. (NYSE:PFE)
PFE continues to drift lower. This thing is already down 5.5% in 2022:
We’re seeing put buyers here already, and there could be a play here to get long puts.
Until next time,
Founder, Profit Takeover
2 responses to “UVXY: How to Trade This ETF for a Week-Long Profit”
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January 20 2022
Your Vix play is to go buy puts on the Vix when you think things will be more volatile I’m not understanding??
Comment: “Man, I love VIX guy. Dude is on point.”
Reply: “glad I ignored market ear and held on to uvxy calls in the morning”
Reply: “I loaded up on uvxy the minute I read the “VIX guy called” post.”