The set-up: When you see volatility spike and have a blow-off day, a lot of people back off, expecting things to calm down. While things do typically calm down, that doesn’t usually last and you almost always see volatility pick up again quickly.

The play: I would wait for the market to calm down this morning – to where everyone thinks everything is fine again — but any time after the market is up today would be a good time to start taking a nibble on the ProShares Ultra VIX Short-Term ETF (UVXY); you don’t know what will set the market off today, tomorrow or Monday, but I do believe you will see something that will trigger the market again.

How I am playing it: My trade is on auto-pilot here. I have hedged calls on UXVY, with the Nov.17 $16 calls, and the $18 and $20 Nov. 17 calls behind it. I will be looking to add more $16 calls today.


 Jeff Bishop is lead trader at He runs short-term trading strategies, primarily using leveraged ETFs.  At the time this was published on on Oct. 26, he held UVXY call options as described in this article; he had no shares or open orders in the ETF but was looking to purchase more options in trading today.

Author: Jeff Bishop

One of the best traders anywhere, over the past 20 years Jeff’s made multi-millions trading stocks, ETFs, and options. He is renowned as an incredible trader with a deep insight and a sensitive pulse on the markets and the economy. Jeff Bishop is CEO and Co-Founder of

Even greater than his prowess as a trader is his skill and passion in teaching others how to trade and rake in profits while managing risk.

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