Energy Markets in Distribution

XLE, XOP, and USO have provided some nice profits for me in recent weeks. But even with the market strength, these markets are signaling distribution. Is this a shorting opportunity? NO. It’s an exit opportunity. I’m out of energy and moving to a very low Delta portfolio.

Low Delta and negative Vega is actually a method for respecting a bullish market that is a little extended.

I added a calendar to RUT profile in case IV spikes.

I’ve seen some recently trying to sell puts on VXX — what a bad plan for getting long Volatility! VXX is mathematically the worst instrument on earth to get long while it’s trending down… THE WORST.

I like VIX calls and Index calendars much better for long Vega protection.

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