VIX at range support
We recently mentioned that the VIX was trading at resistance levels in relation to the recent range between 32 & 44. Sure enough the VIX pulled back off resistance and is already back near 32 support.
The support area in the image is noted by the purple ovals. As you can see, the VIX tends to get a boost after testing the 30-32 area. With triple witching almost behind us, the market may not have a prop to keep it from selling off again. With that in mind, a VXX Oct Bull Put Spread entry is worth consideration.
It makes sense to put in a bullish VXX position with the VIX at support. Our threory is to always play a range until the range breaks. There's always a chance that the VIX will break below support sending VXX lower and the market higher, but that's a risk we're willing to take.
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