On Monday. I told you my reasons for believing that VIX would fall, VXX was headed seriously lower and that contango would soon replace backwardation in the VIX futures (providing more headwinds for VXX).  Forty-eight hours later, all three things have come true.

Until Friday, I am offering you the lowest price ever to become a Terry’s Tips Insider and get a 14-day options tutorial which could forever change your future investment results.  It is a half-price back-to-school offer – our complete package for only $39.95. If for no other reason, you owe it to yourself to see how we have made 67% a year trading options on Costco (and how you can use the same strategy on your favorite stock or ETP).  Click here, enter Special Code BTS (or BTSP for Premium Service - $79.95).

This could be the best investment decision you ever make – an investment in yourself.

Happy trading.

Terry

Update on VXX Crash Warning and Reminder That Half-Price Sale Ends on Friday

Two days ago, I told you all about VXX, an ETP I called the worst “stock” you could have owned for the past 6 years.  It has fallen from $6400 to $26.  Now it has fallen another 9.8%, closing yesterday at $23.50.  As I write this before the market opens on Wednesday, it is trading another $.35 lower in the pre-market.   A short sale on Monday would surely have been a good idea.

I also told you about an option play that would take 6 months to unfold.  While no one likes to wait that long to make some money, a long-term time frame like that is a far more conservative investment because you give the stock many months to continue the strong downward path it has taken every year since it was formed in January 2009.

Here is that chart in case you missed it:

http://www.terrystips.com/blog/wp-content/uploads/VXX-Historical-Chart-2015.png

Here is what I reported to you on Monday (and what I told Terry’s Tips Insiders on Saturday):

“If you believe (as I do) that the overwhelming odds are that VXX will be much lower in 6 months than it is now, you might consider buying a Mar-16 26 call (at the money – VXX closed at $26.04 yesteday) and sell a Mar-16 21 call.  You could collect about $2 for this credit spread.  In 6 months, if VXX is at any price below $21, both calls would expire worthless and you would enjoy a gain of 66% on your $3 at risk.  It seems like a pretty good bet to me.”

Yesterday, VXX closed at $23.50, down almost 10% in two days.  The spread could now be sold for only $1.65. For each spread you sell, you will be making an investment of $335 to make precisely $162.50 after commissions if VXX is any lower than $21 on March 18, 2016.  While I think that is still a good trade, your return in 6 months would be 48.5% rather than the 66% you could have made with the same trade at the open on Monday.  While your return would be less today, you don’t have to wait for it to fall so far to get below $21 now that is down over 10% (in pre-market trading).

This may all seem a little confusing if you aren’t up to speed on options trading.  Don’t feel like you are alone - the great majority of investors know little or nothing about options.  You can fix that by going back to school and taking the 14-day options tutorial that comes with buying the full Terry’s Tips’ package at the lowest price ever – only $39.95 if you buy before Friday, September 23, 2015.

Lowest Subscription Price Ever:  As a back-to-school special, we are offering the lowest subscription price than we have ever offered – our full package, including all the free reports, my White Paper, which explains my favorite option strategies in detail, and shows you exactly how to carry them out on your own, a 14-day options tutorial program which will give you a solid background on option trading, and two months of our weekly newsletter full of tradable option ideas.  All this for a one-time fee of $39.95, less than half the cost of the White Paper alone ($79.95).

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Any questions?   I would love to hear from you by email (terry@terrystips.com), or if you would like to talk to our guy Seth, give him a jingle at 800-803-4595 and either ask him your question(s) or give him your thoughts.

I look forward to having you on board, and to prospering with you.

Terry

P.S. For this lowest-price-ever $39.95 offer, click here, enter Special Code BTS (or BTSP for Premium Service - $79.95).  See exactly how we have made 67% a year trading options on Costco (and how you can use the same strategy on your favorite stock or ETP).