Stock / Symbol: Ultra VIX ETF / UVXY
Strategy: Calendar Call Spread
Trade entry date / price: 17 Sep 2020 / $19.63
Price at this post: $21.45
Reasoning: We've gotten our anticipated market pullback. Technically, it looks like the major indices could find support as early as today or tomorrow. With that in mind, we're going to enter in our GTC exit order here. In order to get filled at our desired level, UVXY will need to trade up to around $25.50. The current Greeks on this position are: 30.9 Delta, 3.2 Theta and 2.3 Vega.
Trade Exit Details:
STC 1 UVXY 30Oct20 30 call
BTC 1 UVXY 25Sep20 30 call
For a min net credit of $3.65 per contract (GTC order, limit order). The mid is currently at a credit of $2.50.
Analysis:
Max Risk: $195 / My Actual Risk: $185
Max Reward: $475 or 240% with UVXY at $30 by Sep 25th
Profit Range: UVXY between $20.60 and $50.00 by Sep 25th
Estimated Commission (round trip): $2.60
Take Profits at: $30 to $32 range
