Trade ideas
VXX - Risky bear credit call spreadOpened bear credit call spread to hopefully take advantage of the high IV% and time premium. As long as market vol remains fairly stable for the rest of the week, I'll be in good shape. The very high time premium on short dated options means I am only at risk for a short period of time. It is atypical to be able to capture this amount of premium for options about to expire. The down side of trading short dated options is it is very hard to make adjustments if the trade goes against you.
VXX 16.77% $50.23
D: .2382
G: .0528
T: -.2314
IV%: 253% (vs. 112.52%)
W:
OPENING: VXX MARCH 2ND 26/29 LONG PUT VERTICAL... for a 2.18/contract debit.
Metrics:
Max Profit: $82/contract
Max Loss: $218/contract
Break Even: 26.82
Notes: Adding some on this little VIX bump we have today. I don't think there's a new weekly opening up this week (monthly expiry), so adding a smidge here in the expiry nearest 45 DTE. As always, staying small, keeping powder dry to add on pops ... .
Lack of Robustness Hi guys. I wasn't going to short this but I can't resist imho. A small position couldn't hurt I meeklu think. Good luck if you try.
Idea of the CurveHi guys. Here's my idea of a low risk trade on VXX. No curve no deal imho. Thank you for taking a look.
SHORT IPATH S&P500 VIX (VXX)Entry: $50
T1: $30
Stop: $60
extra info:
IF targets did not hit in 4 weeks the position gets closed at market price.
IF target hits 5% we sell 50% of the stock.
VXX is in the window for a good Put trade. Go out of the money 10% and spread $5 to neutralize the vol crush, and enjoy the profits.
The Ideal HedgeWith equity and debt markets at all time highs, coupled with slowing growth and a prolonged bull market it may be time to start hedging your portfolio. One way to do this is through the VIX index-tracking ETF:VXX. Attahched is a chart of the actual index and you can see that in times of market pullbacks, the VIX spikes to unbeleivable levels. Good luck! I will be posting more often trade ideas.
Squeezing Some Alpha Out of VolatilityI don't care about the direction of the general market because the market does not dictate when and where I find sheer outrageous value. However, I do believe the diligent investor can leverage volatility in crazy market swings like these in order to generate some alpha for their portfolio.
My latest blog post discusses this volatility trade in short, as well as my general thoughts on market directions and their impact on investment decisions. You can check it out here: rockvuecapital.wordpress.com
Always trying to improve,
Brandon
OPENING: VXX FEB 23RD 25.5/28.5 LONG PUT VERTICAL... for a 2.20/contract debit.
Max Profit: $80/contract
Max Loss: $220/contract
Break Even: 26.30
Notes: This filled immediately at open, so I wasn't able to adjust the price (to be honest, wasn't expecting it to fill right off the bat). You may still be able to get a fill for slightly better than I did or shoot for the 26/29's for less than 2.25/contract ... .
OPENING: VXX MARCH 2ND 25.5/28.5 LONG PUT VERTICAL... for a 2.23/contract debit.
Max Profit: $77/contract
Max Loss: $223/contract
Break Even: 26.27
Notes: My standard Thursday or Friday weekly expiry play. You can probably still get a fill in the neighborhood of 2.25 (or .75 credit for a short call vert) if it doesn't move much come Friday open. Will look to take it off for >15% of what I put it on for ... .
Flatlining VXX sets algos off1) increases in volitility
2) Insurance markets under stress
3) Bit and Alt FOMO
4) Globalised Distributed AI in place
5) Aliens
OPENING: VXX MARCH 16TH 27/30 LONG PUT VERTICAL... for a 2.24/contract debit. Snuck 'er in on that a.m. weakness ... .
Max Profit: $76/contract
Max Loss: $224/contract
Break Even: 27.76
OPENING: VXX MARCH 16TH 26/29 LONG PUT VERTICAL... for a 2.20/contract debit at the close on this little bump up in price here.
Max Profit: $80/contract
Max Loss: $220/contract
Break Even: 26.80
Notes: Going out a little farther than I'd like, but it's a bit crowded in February with the setups I currently have on.
