NaughtyPines
Long

ROLLING JUNE 17TH, JUNE 24TH VXX PWCC SHORT CALLS OUT ... .

AMEX:VXX   IPATH S&P 500 VIX SHORT-TERM FUTURES ETN
These short calls are both parts of poor man's covered calls (PWCC's) in VXX             , the long-dated long calls of which are in the September expiry ... .

The June 17th 18 call had lost over 65% of its value, so I opted to roll it here to the July 8th 15.5 short call (as close to the 75% probability out-of-the-money strike as I could get) for an additional $68/contact in credit.

Similarly, the June 24th 18 call had also lost over 60% of its value, so I rolled it to the July 15th 16 short call for an additional $56/contract in credit.

Although it's great to be collecting credit along the way, as with any covered call -- poor man's or otherwise -- you will need price to increase above your cost basis to bail on the trade profitably ... . At the moment, I'm looking to exit the current setups for what I originally paid for them, essentially keeping the credit collected as my profit. However, as we near that September expiration (it's still a bit of ways away), I may have to look at what my scratch point is for each and possibly settle for less if we don't see a pop soon here ... .
Ideas Scripts Chart
United States
United Kingdom
India
España
Italia
Brasil
Россия
Türkiye
日本
한국
Home Stock Screener Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Billing Sign Out