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.
$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 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
#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.
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 25/100 UVXY Jan 19 2018 60.0 Calls @ 1.71.
Breakeven is above 240 on the stock.
$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
$UVXY at 43, $SVXY at 72.