Win in Any Market … Play the Opposite Side

I know a lot of people have been hit with the market sell off over the past week or so.  I started my options strategy at this time and got hammered on a bio tech stock that had bad results on a failed trial.  This got me focused on really tightening up my strategy to make it work with a higher percentage of success.

At my level of trading I’m looking at ETFs that trade around $40 a share that preferably have weekly options with a high premium.  I am trying to sell puts for the premium on Thursday and use the time decay to make my buy back price lower thus netting me a profit.

With the whole market on a downward tailspin right now the only ETF that fits this criteria is VXX.  The VXX is an ETF that follows the volatility of the market and it moves in contrary motion to the S&P 500. 

I got into a position on Monday and closed today making a decent profit.  I just got into another position and hopefully with all of this volatility I can get out today with another profit.