Stock / Symbol: iPath S&) 500 VIX Short-Term Futures / VXX
Option Strategy: diagonal call spread
Trade entry date: Mar 24
Price at trade entry: $30.66
Price at this post: $32.50
Current Position:
Long 1 VXX Jan12 20 Call
Short -1 VXX Aug11 28 Call
Reasoning: With our short calls in-the-money and needing to free up some cash to complete the AXP trade, we closed this position today for about a 12% return. If you like, you can hold off closing this trade until Friday to see if you can get a better price.
Trade Details:
[private_monthly]
STC 1 VXX Jan12 20 Call
BTC -1 VXX Aug11 28 Call
for a net credit of $8.55 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 +
Realized Profit: $128.80 or 15% (pre-commission)
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