Spent some time thinking last night about how $SVXY is trading and the potential for additional volatility over the next month or two.  I have been selling short term calls (about 2 – 3 weeks out) at a level that would provide me a profit and would be OK having the stock called away.  This is really a Theta play.  The benefit was that if we got some short term good news/performance, I could get some shares called away or when the calls expired replace them with higher premium calls.  The downside is that the current premium is fairly low and if $SVXY pulls back further, I would be in a tough spot because my premium didn’t provide much protection and it might not pay to sell the next set of calls for a period of time.  I’m fearful that $SVXY gets close to $40 before it gets close to $60.  So I’m changing my tactic for the time being.  I’m now selling March and June calls with better premium and higher Delta than the short term calls I have been selling.  This gives me more protection in a pullback and if I’m wrong and the market runs up, gets me out of the stock at nice profits.

STO Mar $60 calls @ $3.50

STO Jun $55 calls @ $8.10

STO Jun $60 calls @ $6.10