Stock / Symbol: IPATH S&P 500 VIX SHORT TERM / VXX
Option Strategy: [private_monthly]calendar call spread[/private_monthly]
Trade entry date / price: Nov 21 / $27.88
Price at this post: $28.50
Current Position:
[private_monthly]
Long 3 VXX Jan15 32 calls
[/private_monthly]
Adjustment: Last Friday, our short calls expired worthless, allowing us to capture their full premium. Now, with volatility popping, we're going to sell some more calls. After this adjustment, the Greeks will be: 35.5 delta, 9.2 theta, and 5.8 vega. Please note that I've upped the downside stop to 27 and lowered the upside stop to 33.
Trade Details:
[private_monthly]
STO -3 VXX Dec14 32 calls
for a min credit of $0.55 per contract. The mid is currently at $0.62 (GTC order, limit order). Try for the mid.
[/private_monthly]
Max Risk: $156 (adjusted down from $384)
Max Reward: $500 or 320% @ [private_monthly]32 [/private_monthly]by Dec 19
Profit Range: $27 to $37 by Dec 19
Suggested Downside Stop: @ 27
Suggested Upside Stop: @ 33
