Trade Update - VXX

Hello Smart Option Sellers! Before we get to the VXX update, I wouldn't be a good human being if I didn't comment on yesterday's school shooting in Florida. It's tragic beyond tragic. Being a father of three myself, in addition to saying goodbye to them in the morning, do I now have to say, "I hope you come home alive at the end of the day". I mean it's insane. The last place we would think that our kids are unsafe is in their own schools. Who would want to harm children? I'm sure many of you have children, and possibly even grandchildren. We can't let this become the norm in our society. We can't just think, "oh well, this is how the world works now". Not true! We can't let it be that way. I'm heartbroken for all those affected, and to think that life has to move on. How can those parents move on? I'm angry, sad, frustrated, you name it. I'm sure many of you feel the same. I don't know how many more tragedies like this have to occur before we make a move. I hope it's soon. VXX Trade (VXX) Ok, let's talk about yesterday's trade. For those of you who ventured in, we were successfully filled. When stock markets drop, especially when it happens fast and furious, volatility spikes immensely. But those spikes in volatility don't last long because we have such quick rebounds in the stock market. Volatility and markets move inversely to each other. If you follow the charts like I do, you will always see the V-shaped moves when volatility spikes and then drops quickly. It leaves an inverted V-shape on the charts. And although stocks don't always rebound in V-shaped fashion, the volatility drop itself usually does. This is because once cooler heads prevail, they realize the world isn't coming to an end, and the market stabilizes. You have to understand how psychology plays a huge role in investing. When we get a slow drip lower in the stock market, one in which people have time to absorb and make rational decisions about, panic and volatility stay subdued. This is because people have a chance to think logically about why the market is slowly dropping. But, when we get those massive, fast, intense drops lower of 1,000 points, no one knows what's going on and the firs