OPENING: VIX FEB 14TH 16/19 SHORT CALL VERTICAL
... for a .77/contract credit.
Metrics:
Probability of Profit: 89%
Max Profit: $77/contract
Max Loss: $223/contract
Break Even: 16.77
Notes: This is way farther out than I generally like to go with these, but with the /VX term structure the way it is currently and the way it has been for the past several months, this is probably the best I'm going to get until the term structure adjusts upward giving me >16 short call strikes equal to the /VX future price in shorter duration setups.
In the mean time, I'll keep my eyeballs peeled for a 45-day contango drift trade in one of the derivatives -- VXX, UVXY, SVXY on a VXST/VIX ratio of >1.00 (it's currently something like .86).
Metrics:
Probability of Profit: 89%
Max Profit: $77/contract
Max Loss: $223/contract
Break Even: 16.77
Notes: This is way farther out than I generally like to go with these, but with the /VX term structure the way it is currently and the way it has been for the past several months, this is probably the best I'm going to get until the term structure adjusts upward giving me >16 short call strikes equal to the /VX future price in shorter duration setups.
In the mean time, I'll keep my eyeballs peeled for a 45-day contango drift trade in one of the derivatives -- VXX, UVXY, SVXY on a VXST/VIX ratio of >1.00 (it's currently something like .86).
Trade closed manually:
Covering here for a .52 db, so .25 ($25) profit/contract with 119 DTE. Will look to re-up in shorter duration expiries, assuming we ever get a pop ... .