Rolling ITM

#VXXGame #LongPutDiagonals Most of us have long known the folly of selling puts on $VXX and $UVXY. It can work during volatile periods but as soon as market drifts higher, these go ITM very quickly. I’m rolling my diagonal weeklys to further dated but still ITM positions. The long term positions are fine, but as @fuzzballl says, these short-term puts won’t always be easy.

Rolled VXX Sep 22nd 45.5 puts to Oct 6th 44 puts for .02 credit
Rolled UVXY Sep 22nd 29 puts to Oct 6th 27.5 puts for .15 credit.

XBI ladder

rolled18 dte 76 put to 39 dte 78 put for 0.74 credit. Sold for 0.99 and it was down to 0.19.

@fuzzballl and @jsd501 you guys make it through the storm ok?

Expirations, Have a nice and safe weekend.

Only a few today. Next week is a larger one.

SVXY 50 puts, 55 puts, and 60 puts.

SVXY synthetic week 3

Rolled the 75 calls this week up to 76 next week for 0.68 credit. Because I had rolled the 79 down to 75 earlier this week, not much profit this week, but still lowers the cos basis to 13.22 on the first batch and 18.30 on the second batch.

So basically reduce the cost basis by $2-3 each week by rolling the short options. That should create a risk free position in another 6-8 weeks, then any sales is pure profit and any long term appreciation will be icing on the cake all the way to Jan. 2019.

I cannot load the graph from my work computer but max profit next week would be $980 on 4 contracts if we close at 76. Seems like SVXY will be stuck between 70-80 for a while but will roll the short calls up any chance I get.


VXX long game

#VXXGame #LongPutDiagonals

Bought to open $VXX Jan 2019 20 puts for 1.80
Sold to Open VXX Jan 2019 50/60 call spreads for 2.23

Net credit: .43.
I traded 10, so profit near expiration should be about $10K.
Max risk just under 10K if VXX soars above 60 and doesn’t come back down. An extremely unlikely scenario.

I’m on portfolio margin, and due to other VXX, SVXY and UVXY position, I was actually credited margin back for this trade. How much this may strain my buying power during a big correction is up to my broker.

I don’t think I will be buying a safety call as @fuzzballl does, but I will consider it. Also will consider selling weekly puts to increase profits.

VXX long game

#VXXGame #LongPuts

Looking at setting up #LongPutDiagonals on $VXX, following @fuzzballl‘s lead.

Effective price of VXX 16 months ago: 255.00.
Price today: 46.23
Projected price in 16 months (Jan 2019): 8.38

Buying Jan 2019 20 puts now for 1.83, they’ll be worth 12.62 at expiration.

This is the perfect opportunity, and I darned near missed it because I was watching UVXY too much. I did a study a couple years back on buying long put LEAPs right after reverse splits. It almost always works, unless a huge correction happens near expiration, which is why you would likely close a couple months early.

And if I sell some call spreads to pay for it… it’s a golden trade.

Am I missing anything?

REGN soaring

@fuzzballl You trade this more than I. Do you have a level at which you will roll your 530 call?