My Bullseye pick this week is to buy (SVIX) stock.

SVIX stock near $12 –  1  days later $13.96  = 16%

My Reasoning:

This market continues to be extremely challenging to trade, especially if you are looking for idea to trade to the upside, like I am.

I’ve been pretty spot on the last few weeks with Bullseye ideas, and I hope this week will lead to another winner.

With the massive 3-day descent we’ve seen for the market, I think we are very close to at least a short-term bottom.

Even if things drift lower from here, the “panic” in the market could subside very quickly, and that will cause VIX (the volatility index) to start drop much lower from here.

If that happens, my top trade idea this week will profit very nicely.

Make a note that I am NOT planning to buy the options on SVIX this week, I am only looking to buy the stock (well, it is an ETF technically)

The main reason is that the options are very expensive right now because of insanely high implied volatility.  That doesn’t mean that the options won’t work out.  They certainly could lead to a massive win, if VIX starts to collapse this week.

I find it much easier to manage a large stock position instead, which is what I am planning to do.

I also plan to scale into this trade over the next few days if necessary, not all at once this morning.