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I always like to write puts when the iPath S&P 500 VIX Short Term Futures TM ETN (NYSEARCA:VXX) gets really low, because it’s not going to go much lower. And that is what I’m also recommending to you today:

Sell to open the VXX May 26th $14 put at about $0.28.

VXX shares are currently at about $14.50. If you do not want to be “put” the shares, watch for a drop below $13.50 prior to expiration on May 26. If you are holding the option at expiration and the stock is trading below the $14 strike price, you will be put the shares. If you do not want to take possession of shares, exit the trade if VXX shares drop below $13.50.

A naked put write is a bullish position in which you expect the price of the underlying stock to increase. So, with this trade I’m betting that VXX shares won’t get down to our $14 strike.

We have most of May for our bullish VXX trade — and I think there’s more volatility in this market than they’re saying at this point. I expect the CBOE Volatility Index (INDEXCBOE:VIX) to rise again, which would be advantageous to this position.

Ken Trester is editor of the popular Maximum Options program. Trester has been trading options since the first exchanges opened in 1973 with a winning streak that goes back to 1984 with money-doubling average annual profits since 1990.