Earlier this morning I bought some calls.
Bought some VXX calls September expirations $27 strikes and some TZA calls October expirations $39 strikes. If we don’t get QE3 today then we will get the upside explosion in $VIX that I’ve been anticipating the last few weeks and it will be a seller’s market in equities.
Bought some TNA October $75 strikes. If we do get QE3 today then, as Fly has stated, it will be escalator going up for equities for at least the next 20 weeks.
As it relates to QE3, today’s call buying was to set me up to get some gains regardless of what happens today at 12:30pm Eastern. The gains on VXX and TZA should more than cover the worthless expiration of TNA and vice-versa. Only a sideways market until Fall would make me lose money on these options.
