VIXY Bearish inclined Naked Calls 17 June Expiry

Ronin_trader Updated   
AMEX:VIXY   ProShares Trust VIX Short-Term Futures ETF
  • Whats The Plan/Trade/Thought
    For some reason the VXX options contracts seems to require a lot of Margin/BP to develop a decent premium. As such I decided to look at other VIX related ETFs and found VIXY well priced and from my research has a closer correlation with the VIX
  • Over the past year of trading options i’ve come to realised that I’m really trading volatility in the different sectors. This trade is my hedge trade and while I believe we are in a bearish situation now, I believe we will be ranging at least for the time being. Hence I am somewhat not directional with VIXY

    Risk Mitigation
  • I have two S&R points for this trade with the key S&R 1 at 26.64. This will be my guard rails and reaction points for risk mitigation

    I Feel
  • I feel comfortable on this trade, I’m somewhat still feeling the effects of last month. But I cannot let that influence me

    Imagine Yourself Taking The Other Side
  • This is a possibility given that I am not directional but I could only mark one S&R point

    Look For New Information
  • By selling Calls, I am accepting that there won’t be a steep reversal

    How Do I Feel Now
  • Clear on why I have taken this trade

    Trade Specs
  • Sold 255 Calls @ 0.27 - Strike 27
  • 46.26% to Strike
  • BP Used 85K
  • Max Gain $6630
Trade closed: target reached:

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