iPath Series B S&P 500 VIX Short-Term Futures ETNArca
Description
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I'm not hugely fond of going long volatility, particularly in an instrument that gets routinely battered by contango and/or beta erosion.
With VIX closing in on its 2019 low, however, it may be time to consider one.
Pictured here is a VXX "Super Bull" made up of a 16/18 short put vertical and a 18/20 long call vertical. As of Friday close, it pays a small .11 credit, has a 2.11 max profit, a 1.89 max loss, and a break even of 17.89 versus 18.87 spot, with max profit assuming a finish above 20.
You can also go smaller -- the 17/18/18/19 pays .07, has a max profit of 1.07, a max loss of .93, and a break even of 17.93.
Look to manage aggressively starting at 25% max ... .
Looks not a bad idea given the way it tends to (looking at weeklies) tends to bounce anywhere between here and 11. Think you meant on title line +16P -18P to make it long. Keep smiling!
@NaughtyPines, If I had a Million dollar account I would be shorting PG with two fists at this point lol... have seen what this look like on the weekly chart sheesh tradingview.com/chart/tiC8rbaF/
NaughtyPines
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@TransitMan, Yeah. Added to my list for potential shorts ... . :)