#VXX game I have been…

#VXX game

I have been dissecting the XIV/VXX system marketed by one of the option companies and think I have a better version for the bistroers which many of you are already doing. As I clear out some margin I will start it with a few contracts and keep it rolling TT style. Sell 45 DTE delta 16 or so options and roll as they decay.

So when the VIX heads into backwardization like today, this service goes long VXX when it reverts to contango they close VXX and go long XIV. We can do the same with SVXY and UVXY but with a turbo because of the options.

Sell puts on SVXY and calls on UVXY after a volatility spike or both for the turbo effect. Then when we hit backwardization can sell puts on VXX or go long UVXY stock and get called out on the sold calls. As short as the spikes seem to be I would use short dated options, especially on the VXX. Or if you sold puts on SVXY just take delivery of the stock and then you are long on the reverse anyway.

I know most of you are doing this and I am preaching to the choir but thanks to all of you I am learning how to play VXX game as well and just thinking out loud about ways to keep it rolling long term and make more profits along the way.

Looks like everyone did well today, once I fixed my margin issue I had no problems and should come out ahead in a few weeks.

Cheers, Chris

#s

$SVXY – knowing that I’m…

$SVXY – knowing that I’m going to have to roll some of this week’s short puts tomorrow, I’m not taking any new positions with strike prices above 50 until I unwind the near term puts with higher strike prices.

$UVXY – My plan going…

$UVXY – My plan going forward until VIX futures go back into contango.
I will continue selling UVXY Calls but only the pre-split contracts at the top of the chain.
There are a few available, both shorter term and longer term. The only exception will be calls expiring tomorrow.
UVXY Aug 11 2017 63.0 Calls – sold some today @ 0.23.
UVXY 25/100 Aug 25 2017 20.0 Calls – Stock price breakeven at 80.0
UVXY 25/100 Sep 15 2017 60.0 Calls – Stock price breakeven at 240
UVXY 25/100 Dec 15 2017 37.0 Calls – Stock price breakeven at 148 – Sold today at 2.01
UVXY 25/100 Jan 19 2018 60.0 Calls – Stock price breakeven at 240 – Sold today at 1.71
UVXY 25/100 Jan 18 2019 60.0 Calls – Stock price breakeven at 240 – Sold today at 3.55

SPX wild ride

#SPXcampaign $SPX What a fun day! Lots of action. Ended up rolling 4 put spreads: 2 into condors, one into further puts and one into calls. Here are trades that I did not post earlier:

Closed on GTC orders:
Aug 25th 2520/2545 call spreads for .20. Sold for 1.90 on July 27th
Aug 18th 2505/2530 call spreads for .20. Sold as part of a #CondorRoll for 6.70 on July 19th

Stop and Roll:
Closed Sep 8th 2375/2350 put spreads for 2.95. Sold for 1.50 on Tuesday.
#Rolling Sold Sep 15th 2310/2285 put spreads for 2.05 (1.5x position size).

Closed Aug 25th 2395/2370 put spreads for 3.40. Sold for 1.35 on July 25th.
#ReverseRoll Sold Aug 25th 2480/2505 call spreads for 3.50.

Standard Campaign Spread:
Sold Sep 8th 2510/2535 call spreads for 1.75.

Taking Profits
Bought to close Aug 21st 2480/2505 call spreads for 2.20. Sold for 8.90 on Monday. This was an extra spread I threw on, and I decided to close it now in case we’ve seen the bottom. I have two spreads that were sold ITM and are now just OTM that I will watch as I don’t want them to fall back way-ITM again.

$UVXY #ShortCalls #NonStandard – Sold…

$UVXY #ShortCalls #NonStandard – Sold 25/100 UVXY Jan 19 2018 60.0 Calls @ 1.71.
Breakeven is above 240 on the stock.

$SVXY #ShortPuts #OptionLadder – After…

$SVXY #ShortPuts #OptionLadder – After hours fills coming in bunches as the stock gives up 3 more points after hours.
Sold 1 SVXY Aug 18 2017 64.0 Put @ 2.03 with the stock at 72
Sold SVXY Aug 18 2017 55.0 Puts @ 0.69
Sold 1 SVXY(Weekly) Sep 1 2017 50.0 Put @ 1.24
Sold SVXY(Weekly) Sep 8 2017 40.0 Puts @ .80
Sold 1 SVXY(Weekly) Sep 8 2017 45.0 Put @ 1.09
Sold 1 SVXY Sep 15 2017 42.5 Put @ 1.29
Sold 1 SVXY Sep 15 2017 41.0 Put @ 1.09
Sold 1 SVXY Sep 15 2017 40.0 Put @ 1.09
Sold 1 SVXY(Weekly) Sep 22 2017 45.0 Put @ 1.67

/VX on a tear after hours

$UVXY at 43, $SVXY at 72.

$UVXY #ShortCalls #Nonstandard #ClassicVXXGame –…

$UVXY #ShortCalls #Nonstandard #ClassicVXXGame – Got two more orders off just after the closing bell. Either margin calls or anxious buyers in an illiquid contract.
Sold 1 UVXY 25/100 Jan 18 2019 60.0 Call @ 3.35.
Sold 1 UVXY 25/100 Jan 18 2019 60.0 Call @ 3.55.
Strike price breakeven is 240.0 with the stock at 40.60

VXX gaming

#VXXGame BTC $SVXY Sept 90 call for 1.80. Sold for 4.65 (effective price)
STO $UVXY Aug 25th 68 call for 1.33

SVXY

STO September 8, 50 puts @1.30

VIX futures now in backwardation

VIX futures now in backwardation
Front month and second month: http://vixcentral.com/

T-2108

Anyone know where the T-2108 is trading today?

SPX next-day

#SPXcampaign Sold to Open $SPX Aug 11th 2425/2400 put spreads for 2.00, as SPX hits a new low of 2443

$UVXY #ShortCalls #VXXGame – I…

$UVXY #ShortCalls #VXXGame – I will be adding to these …. slowly, until even higher strike prices are available.
So far today, the stock has topped out at 39.54
Sold 1 UVXY AUG 18 2017 68.0 Call @ 1.35
Sold 1 UVXY SEP 1 2017 64.0 Call @ 2.82
Sold 1 UVXY SEP 8 2017 64.0 Call @ 4.09
Sold 1 UVXY SEP 15 2017 68.0 Call @ 4.00
Sold 1 UVXY SEP 22 2017 64.0 Call @ 5.10

CMG Dec

Sold $CMG Dec 15 230 put @ 2.60. Lowest strike. Willing to take the chance that the stock doesn’t have another 100 point (30%) drop in it before Dec. The strike is at a level CMG hasn’t been in 6 1/2 years (Feb 2011).

Market

Even with SPX still down more than 20 points, they have started selling vol hard.

VXX 1:4

#ReverseSplit – In a couple weeks…

http://www.businesswire.com/news/home/20170809006219/en/Barclays-Bank-PLC-Announces-Reverse-Split-iPath%C2%AE

SVXY

STO September 22, 40 puts @1.05

$UVXY

STO Aug 25 $37/$38 call spreads @ $.033

SPX roll

#SPXcampaign Since this one started going ITM with less than a week to expiry, rolled into a somewhat tight condor.

Closed $SPX Aug 16th 2450/2425 put spreads for 6.65. Sold last week for 2.25
#CondorRoll Sold Aug 23rd 2385/2410/2480/2505 condors for 7.15

$UVXY #ShortCalls #Nonstandard #ClassicVXXGame -…

$UVXY #ShortCalls #Nonstandard #ClassicVXXGame – Sold 1 UVXY 25/100 Jan 18 2019 60.0 Call @ 3.15.
TOS says the breakeven stock price is 252.60

Short Vol sales

#VXXGame. Dipping in…
Sold $UVXY Sept 15th 68 call for 4.70 (highest strike)
Sold $SVXY Sept 15th 52 puts for 1.90
Sold $SVXY Jan 2018 25 put for 3.50

TTD earnings

#Earnings I don’t know this stock and it’s a fairly new issue. It has moved steadily up since IPO. Only three earnings reports; two positive, one slightly negative but recovered within a week. I am using a spread because it is too new and unknown to risk naked.

Sold to Open $TTD Aug 18th 45/40 put spreads for .80. Biggest UP move: 30.1%, Biggest DOWN move: -2.8%, Average move: 13.9%. My short strike is -11.8% OTM, with stock at 51.00.

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SVXY stops

#VXXGame BTC $SVXY Sep 15th 90 call for 2.75. Scaling out of this position, this one at a 1.90 gain.

BTC Aug 18th 80 put for 5.65. Sold for 1.95 on July 27th. I want to avoid carrying a lot positions ITM. I will likely keep a few but will be rolling out others.

I plan to replace both with new positions, but first want to wait to see if this becomes an actual correction this time, rather than another head-fake.

SPX CondorRoll

#SPXcampaign Sold to Open Sept 6th 2275/2300/2510/2535 #CondorRoll for 2.85. A roll from the put spread stopped earlier today.

SVXY

STO December 15, 40 puts @2.55

SVXY

STO September 22, 50 puts @1.85

$SVXY #ShortPuts – Sold 1…

$SVXY #ShortPuts – Sold 1 SVXY SEP 15 2017 42.5 Put @ 1.09 with the stock at 78.60

$UVXY #ShortCalls #VXXGame – you…

$UVXY #ShortCalls #VXXGame – you know UVXY is on the move when they start adding higher strike prices.
Sold 1 UVXY AUG 18 2017 68.0 Call @ 1.05
Sold 1 UVXY SEP 1 2017 64.0 Call @ 2.62
Sold 1 UVXY SEP 8 2017 64.0 Call @ 3.29
Sold 1 UVXY SEP 15 2017 68.0 Call @ 3.67
Sold 1 UVXY SEP 22 2017 64.0 Call @ 4.79
I will be adding to these …. slowly

UVXY

#IRA #VXXGame – Adding a little more…

Sold UVXY JAN 18 2019 45.0/55.0 Bear Call Spreads @ 1.32

Rolled WDC 9/17 90 put…

Rolled WDC 9/17 90 put to Jan. 2018 for 3.57 credit.

Brings cost basis down to 85 and change but allows me to stay in some other positions now. Kind of backed myself into a corner with some margin but now everything can stay open.

Don’t know about the rest of you but TOS has done some weird stuff with margin as soon as vol. picks up, even on cash secured stuff. Will need to speak with them to see what they are doing and why they all of a sudden calculate you need more money when it is clearly covered.

At least now I can leave the XBI and SWKS ladders open to let theta do it’s thing.

SVXY

In my IRA, STO September 15, 50 puts @1.45

$SVXY $UVXY

Sold:
$SVXY Aug 11 70 puts @ .30 (tomorrow’s expiration)
$SVXY Aug 18 75 puts @ 1.40
$SVXY Aug 25 60 puts @ 1.20
$SVXY Sep 22 50 puts @ 1.40
$SVXY Dec 15 40 put @ 2.10
$SVXY Mar 16 2018 35 put @ 2.55

$UVXY Aug 11 50 calls @ .41 (tomorrow’s expiration)
$UVXY Aug 18 68 calls @ .50
$UVXY Aug 25 60 call @ 1.80
$UVXY Sep 1 64 call @ 1.50
$UVXY Sep 8 64 call @ 2.00
$UVXY Sep 15 68 call @ 2.85
$UVXY Jan 18 2019 65 call @ 14.50

Rolled WDC 87.5 call this…

Rolled WDC 87.5 call this week out 1 and 2 weeks to 84 and 85 calls for 0.77-0.90 credits. Cost basis now 87 and change on assignment at 90. I suppose I could short the stock because that will make it go back up. 1 up day in 2 weeks…….

BTC SWKS 9/8 100 put for 2.05. Sold for 3.03 on a roll a few weeks ago. Break even trade. Would have let it sit but need so extra margin to take advantage of the sentiment change.

I may roll a 37 DTE WDC 90 put out to Jan 2018 for 3.45 credit just to bring in some cash for some other trades. Have to figure out where I want to move it first.

NVDA earnings

#Earnings Sold to Open $NVDA Aug 11th 150 puts for 1.42 (avg price), and one (1) 155 put for 2.27.

Biggest UP move: 29.8%, Biggest DOWN move: -7.4%, Average move: 10.9%. These strikes are -10.7% and -7.7% OTM respectively (with stock at 168.00).

UVXY

#IRA #VXXGame – Only spreads allowed in this account…

Sold UVXY MAR 16 2018 40.0/50.0 Bear Call Spreads @ 1.53

SPX puts stopped

#SPXcampaign This hit my 3.00 stop, so closing it and looking for a roll in the coming hours.
Bought to close $SPX Sept 1st 2395/2370 put spreads for 2.80. Sold for 1.40 last Friday.

NVDA selling

#Earnings starting to sell Aug 11th 150 puts before it bounces too much

SVXY

STO September 15, 50 puts @1.50 but staying small.

W – saving pennies

#Earnings Bought to close one (1) $W Aug 11th 80/75 put spread for 4.95. A nickel less than expiration. I will try to close the rest for less.

$SVXY #ShortPuts #OptionLadder – staying…

$SVXY #ShortPuts #OptionLadder – staying way out of the money and small with the stock at 82
Sold SVXY AUG 25 2017 50.0 Puts @ 0.46
Sold SVXY SEP 1 2017 50.0 Puts @ 0.50
Sold SVXY SEP 8 2017 50.0 Puts @ 0.87

$UVXY

STO Aug 11 $39 calls @ $1.08, expire tomorrow.

Earnings this week

#Earnings It looks like $W is a bust, and $PLCE under pressure, too. Wayfair suffers from mediocre earnings report, a weak market, and then more weak retail earnings last night.

SPX puts sold

#SPXcampaign Sold to Open $SPX Sept 8th 2340/2315 put spreads for 1.50, with SPX at 2460.

Downside Warning has fired

#VIXindicator A second signal fired when the VIX opened about 13.26, which is 50% above the VIX low of 7/26. This means we have a Warning into effect, with the possibility of further downside in the coming days or weeks.

good morning

It is going to be interesting today and tomorrow.