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Strategies & Market Trends : Option Strategies

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To: Bridge Player who wrote (1782)	9/12/2016 7:51:43 AM
From: Bridge Player	of 2591

Update VXX trades: Cost Lot 1: 11.64 Cost Lot 2: 11.00 (Put assignment) Avg Cost: 11.32 Premium written: 7/22 12 calls: .29 7/29 11.5 calls: .25 7/29 11 puts: .24 8/5 10.5 calls: .21 8/5 10 puts: .20: Bot back at .50 8/12 10 puts: .63: (Bot back at .77) 8/12 10 calls: .14 Total premium written: 1.46 - .77 to close 8/12 puts = .69 net 9/16 40 calls: 1.02 Net cost: 11.32 - .69 = 10.63 equivalent to 42.52 on reverse split shares. Price at close 8/12: 36.94 (adjusted 1 for 4 reverse) equivalent to 9.234 Net loss at close: 42.52 - 36.94 = 5.58; equivalent to 1.395 on pre-split shares. All trades exclude small commissions at Interactive Brokers. Adjusted cost before calls written on 9/9: 42.52. Wrote 9/16 40 calls for 1.02; new cost basis 41.50. If the 9/16 calls are exercised as seems likely as of this morning I'm going to let this dog go free with a net loss of 1.50 plus a lot of small commissions, equivalent to .375 on original shares. If the current drop turns into a crash so be it. This "hedge" was a mess from the beginning. ARS was right about this awhile back. Message 30685402

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