Seeking Alpha

Patrick Chu's  Instablog

Patrick Chu
20 Followers
5 Following
Send Message
Small business owner and active full-time trader. I started trading full-time November 2011. My main form of trading is selling credit spreads for options premium, but I will often buy ETFs, stocks, or options as hedges or directional bets. At any time I may be long/short call/put ITM/OTM... More
  • VXX And SPY Moving Up Together This Morning 0 comments
    Feb 15, 2012 11:07 AM
    February 15, 2012, 11 am.

    On my quote screen I have VXX and SPY close to each other because I have positions in each: VXX on the long side, SPY multiple bearish-leaning options.

    At times today I've seen them moving up AT THE SAME TIME. That's nuts.

    SPY's intraday high today is at multi-month levels. It hit 135.71 shortly after opening. The previous closest intraday high was 135.70 hit last July 7, and then all the back to May to find a higher intraday print.

    And yet, these are very nervous levels. People are bidding up the insurance higher even as the market moves higher. The VIX has recently been in multi-week highs.

    Is this an advance warning sign? Is everyone just biding their time, waiting for that piece of bad news to sell off their stock, or are they overpaying for insurance because of Greece?

    It's going to be an interesting next week or two in the markets.

    Disclosure: I am long VXX.

    Additional disclosure: Multiple SPY options that lean bearish.

Back To Patrick Chu's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Full index of posts »
Latest Followers

StockTalks

  • Like yesterday, VXX and SPY moving up at the same time. Only 1 can win, and yesterday it was VXX.
    Feb 16, 2012
  • Wow, what an insane, great day. Wasn't looking good for the bears pre-market.
    Feb 15, 2012
  • CNBC: AAPL accounts for 90% of Nasdaq's gains today. If the Nasdaq is declining today, we would never know.
    Feb 15, 2012
More »
Posts by Themes
market-outlook, short-ideas
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.