Stock / Symbol: [private_monthly]iPath S&) 500 VIX Short-Term Futures / VXX[/private_monthly]
Option Strategy: diagonal call spread
Trade entry date: Mar 24
Price at trade entry: $30.66
Price at this post: $23.68
Current Position:[private_monthly]
Long 1 VXX Jan12 20 Call
[/private_monthly]
Adjustment: With the market pulling back, we're going to see if we can sell a near term call against our long call. This will lower our cost basis from $8.44 per contract down to $7.44 per contract. We're using a GTC order because we likely will not get filled today, as we'll need another big down day in the market before we get our price on the 28 strike call.
Trade Details:
[private_monthly]
STO-1 VXX Aug11 28 Call
for a net credit of $1.00 per contract (GTC, limit order)
[/private_monthly]
Max Risk: $744 (adjusted down from $844)
Max Reward: $200 or 26% at $28 by Aug 19th
Profit Range: $25.50 +
Non-members, click here for access
Speak Your Mind