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Strategies & Market Trends : Option Strategies -- Ignore unavailable to you. Want to Upgrade?


To: Bridge Player who wrote (1705)7/25/2016 10:08:38 AM
From: robert b furman  Respond to of 2591
 
Good to see you posting your vix trades Bridge.

Thanks



To: Bridge Player who wrote (1705)7/28/2016 8:51:40 AM
From: alanrs1 Recommendation

Recommended By
zone_boundry

  Read Replies (1) | Respond to of 2591
 
I bailed on the trade, now remember why I don't like the "volatility" index.

There are probably good mathematical reasons for it, but my observation is that when the market goes up hard the vix goes down hard. If the market is flat the vix goes down a little. Only when the market goes down hard is the vix a good idea. As such, long the vix is not much different from short the market.

Short the market is more direct, with less mathematics between myself and clarity.
I know better, it was a cheap refresher lesson.

ARS



To: Bridge Player who wrote (1705)8/1/2016 9:14:57 AM
From: Bridge Player  Read Replies (2) | Respond to of 2591
 
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
Total premium written: .78

Net cost: 11.32 - .78 = 10.54

Pre-opening price 8/1: 10.09

Net loss: .45

Current strategy: Considering writes of 8/5 10.50 calls and 10.00 puts, update later today.