NaughtyPines

BOUGHT VIX 12.5P/14.5P/15C/17C "SUPER BULL" TO OPEN

TVC:VIX   VOLATILITY S&P 500
4 months ago
... for a .25 debit.

The "Super Bull" consists of two parts -- a short put vertical ( bullish assumption) for which you received a credit and a long call vertical (also bullish assumption), for which you pay a debit. In this case, I had to pay a little more for the long call vertical than I got in credit for the short put vertical.

The notion here is to either (a) take the short put vert off in profit on an up move and let the other spread "ride"; (b) take the long call vert off in profit on an up move and let the other spread "ride"; or (c) take the whole thing off as a unit in profit on an up move.

4 months ago
Comment: "Doubled down" with another contract in the exact same strikes, but for cheaper, resulting in a net position value of $40.
4 months ago
Comment: The other thing that can be done is to take apart the "Super Bull" "in pieces." For example, VIX has declined since I put this trade on, and therefore the short call has decreased in value such that I could take it off in profit if I wanted to, leaving the long call to "ride alone" on any pop.
4 months ago
Comment: I'm not going to do that here, but it's something to think about as you look at the setup intratrade. With the short call in particular: the short call will "drag" on the profitability of the long call vertical since, as price moves toward the calls, their price increases. That being said, the short call also provides you with a bit of protection for a downside move, so you also don't want to be hasty to take it off. Naturally, if it's approaching worthless, it's probably advisable to go ahead and do that, since at that point, "it's done its job."
4 months ago
Comment: Closing out the 17 short call here for a .53 ($53)/contract profit (money, take, run on long vol plays is my motto). The 17 short will generally be a drag on the profitability of the bull call vert side of the setup should be get a pop (that being said, it also protects the setup from a bit of downside). I'll close the remainder of the setup at scratch or "in pieces" (i.e., take off the long call in profit; take off the short put vert in profit), but I'll naturally need some movement toward or above 15 ... . I don't ask for much ... .
4 months ago
Comment: Rolled the 12.5 long put down to the 11.5 long put for a .25 ($25)/contract credit, locking in the profit resulting from the increase in the value of the long put on this down move. Trying to salvage what I can out of this trade, since it isn't looking all that promising at this point with 17 DTE ... .
4 months ago
Trade closed manually: Closing here for a 2.07 ($207) debit to avoid max loss on this little guy. Hands down, long volatility plays have been the least productive trades for me this quarter. Movin' on ... .
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