OPENING: VIX FEB 20TH 17/20 SHORT CALL VERT
... for a .66 ($66)/contract credit.
I did this on 12/30, but neglected to post it.
This was another VIX "Term Structure" trade (See Post Below) using the Feb VIX futures contract price as a guide. The Feb contract was going for 16.55, so I used the nearest strike above that price, the 17, for my short call leg.
With these, I'm playing it "by ear" as to the take profit. Generally, I shoot for 50% max, but if VIX diddles around down here running into expiry (which in the scheme of things, is quite far out in time), I'll shooting for something approaching max ... .
I did this on 12/30, but neglected to post it.
This was another VIX "Term Structure" trade (See Post Below) using the Feb VIX futures contract price as a guide. The Feb contract was going for 16.55, so I used the nearest strike above that price, the 17, for my short call leg.
With these, I'm playing it "by ear" as to the take profit. Generally, I shoot for 50% max, but if VIX diddles around down here running into expiry (which in the scheme of things, is quite far out in time), I'll shooting for something approaching max ... .
Commentaire:
Covering here for a .33 db (50% max profit). $33 gross profit; $26/contract net after fees/comms.
Commentaire:
As a side note, I've been asked why I don't "wait longer" to take these off, for example, closer to max profit. As we all know, VIX can pop virtually at any time; I'd prefer not having a winner (albeit small) turn into a poo pile.
Commentaire:
Moreover, when the market gives you 50% in 10 days' time, I say "take it."
