Stock / Symbol: IPATH S&P 500 VIX SHORT TERM / VXX
Option Strategy: [private_monthly]vertical call spread[/private_monthly]
Price at trade post: $27.85
Reasoning: If we do see increased volatility in the market, this trade on VXX will do nicely. The greeks going into this trade are: 34.2 delta, 0.4 theta, and 0.5 vega.
Trade Details:
[private_monthly]
BTO 2 VXX Sep14 28 calls
STO -2 VXX Sep14 30 calls
for a max net debit of $0.55 per contract. The mid is currently at $0.50 (GTC order, limit order).
Try for the mid +0.01
Requirements:
Cost/Proceeds $104
Option Requirement $0
Total Requirements $104
Estimated Commission $6
[/private_monthly]
Max Risk: $104
Max Reward: $296 or 284% @ [private_monthly]30+ [/private_monthly]by Sep 19
Profit Range: at/over $28.60 by Sep 19
Suggested Downside Stop: @ 25
Suggested Upside Stop: NA
