TopOptionAlert
$UVXY NOV20 18C · still actionable
Zone: $17.26 to $17.50
Invalidation: close under $16.87
Objectives: $18.50, then $19.50
The math: up 6.4% to the first objective and 12.2% to the second, against 2.9% risk on the invalidation, better than 4 to 1 to the second
Dear friend, think of this hedge setup like an umbrella you buy while the sky is still mostly blue. UVXY closed Monday at $17.38, down 6.1 percent, after reaching near $19.50 last week when fear jumped, and what that means is simple. Calm days make this kind of insurance cheaper, and it only needs one rough stretch in the market to wake up again, with $18.50 first and the $19.50 area after that. A close under $16.87, the low on Monday, says the calm has won for now and you step aside.
P.S. Brent crude touched nearly $110 a barrel on Monday. When oil jumps like that, fear rarely stays quiet for long.
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