OPENING: VXX JAN 26TH 30/33 LONG PUT VERTICAL
... for a 2.22/contract debit.
Metrics:
Probability of Profit: 64%
Max Profit: $78/contract
Max Loss: $222/contract
Break Even: 30.78
Notes: With UVXY sliding below 12, it's losing a bit of granularity here due to its size, so I'm switching over to VXX for a bit until UVXY reverse splits (which usually occurs around $8-$9) (i.e., it's a bigger move for UVXY to move a half strike than for VXX to move a half strike).
I'll continue to put these plays on weekly in the expiry closest to 45 days wherever price lies, but also take advantage of VXST/VIX >1.00 pops with additional spreads as opportunities present themselves. As with all spreads, I generally will pull them off at 50% max profit ... .
Metrics:
Probability of Profit: 64%
Max Profit: $78/contract
Max Loss: $222/contract
Break Even: 30.78
Notes: With UVXY sliding below 12, it's losing a bit of granularity here due to its size, so I'm switching over to VXX for a bit until UVXY reverse splits (which usually occurs around $8-$9) (i.e., it's a bigger move for UVXY to move a half strike than for VXX to move a half strike).
I'll continue to put these plays on weekly in the expiry closest to 45 days wherever price lies, but also take advantage of VXST/VIX >1.00 pops with additional spreads as opportunities present themselves. As with all spreads, I generally will pull them off at 50% max profit ... .
Trade closed manually:
Covering here for a 2.58/contract debit (.03 short of 50% max) -- .36 ($36)/contract profit (16.2% ROC). Now flat Jan with short UVXY/VXX setups.