UVXY

#LongPutDiagonals #SyntheticShortStock – Taking my medicine on this one…tired of looking at it. Spending some of the front month premium received to roll way out and down.

Rolled UVXY JAN 19 2018 20.0 Puts to JAN 18 2019 10.0 Puts @ 1.47 debit.

Weekly puts had brought in 2.87 so leaving 1.40 in credit on these which caps my gains to the downside at 8.60.

So…synthetic short at 30.00 with max gain capped at 21.40 points with UVXY below 8.60 on the downside.

21.40 max gain minus the cost of the trade of 16.30 leaving a gain of 5.10 per spread. Ok but not great. It was done in a big enough size to definitely make it worthwhile. I think @vxxkelly has the right idea on this one…set it and look at it again in a year without messing with any front month positions.

Hey…what can I say?…LOL It was an experiment that hopefully everyone that tried it makes a little with almost zero stress in the trade!

🙂 🙂