VXX - Bear Credit Call Spread

This is purely my trading journal, not investment advice. Especially with the screwed up and questionable nature of these volatility ETF & ETN             created products, risk is even higher. Trading options of one of these products is buying/selling derivatives of an underlying product that is based on futures of a derivative.

I closed my previous call spread. Took the money and ran not risking something crazy happening before expiration. At the same time I opened another call spread expiring 2/16. I lesson the spread, which reduced the income I receive, but also lesson my overall max possible loss should the trade move against me. To me, these near date options are very expensive right now. If price should continue up, even with the options having a short expiration date, I should have the ability to roll or adjust my position early next week if needed.

Spread is 52 - 62.

While is tempting to open another credit call spread as price has moved higher, I don't want to be exposed to additional risk.

Regarding my the bear debit put spread i opened (another post), in hind sight that was a poor decision. The good thing is since I used premium received from the first credit call spread, I didn't use any of my own money for the trade. IF the price moves significantly lower early next week, I should still have the ability to roll & adjust the spread for minimum cost. However, with the current price gap of the first and second month VIX             futures , price may not move enough for a roll/adjust to make sense for the put spread.

Trade active:

Will let the options expire versus manually closing position. Options are basically worthless at this time. Trade worked great. I would love to implement this strategy again, but unfortunately IV% has drastically dropped and the options are very inexpensive. Selling a new credit spread would be taking risk without appropriate potential gain. The positive is I was able to run it back to back two times. 2018 has the potential to be a volatile year, so I expect to have other opportunities in the future.
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