VXX adjustment

#LongPutDiagonals – Here’s the latest…adjusting the front month put sales that have (or will be) capping gains.

1. Closed one third of the position using the cash brought in from front month sales. This will open up that part of the 2019 position to continue lower towards zero.

Bought to Close VXX JAN 19 2018 38.0 Puts @ 6.68

2. Rolled the other two thirds of the put positions out and down to 2019.

Rolled VXX JAN 19 2018 38.0 Puts to VXX JAN 18 2019 28.0 Puts @ .31 credit

I made this adjustment after this conversation with TDA this morning:


10:24 fuzzball: Quick question…any idea when the VXX 2020 LEAPS will be coming out?
10:30 SeanF_TOS: Hello, at the latest I would anticipate them to be issued once the Jan 2018 options expire
10:30 SeanF_TOS: usually they expire the 2018 ones then list the next set the following monday
10:31 fuzzball: Makes sense. I noticed the AAPL 2020’s were already trading. I’m sure it varies from ticker to ticker.
10:34 SeanF_TOS: Yeah they could potentially list them earlier based on trading demand. Exactly there isn’t an exact science to it, we’re usually good at keeping up and putting them on the platform the same day they get listed, but if you ever see them on cboe’s website as available to quote and we don’t have them let us know and we’ll get them listed by the next business day.
10:35 fuzzball: Thanks!
10:35 SeanF_TOS: You’re welcome! Have a great day!


So…as soon as the 2020’s come out I’ll be rolling the puts again out and down and probably setting up another batch of synthetic short positions above them. Those (the 2020’s) will be capped to the downside again but the much larger 2019 position will be free to run all the way down.