Sold to open 20 SVXY calls expiring in September, strike $190 for a premium of $6.50
June 26, 2017 at 6:12 pm
You obviouly think we will experience a significant drop in the SPX and the resulting VIX spike. You sold an option 14% out of the money with more than 12 weeks to go. SVXY can achieve that my mid August. Your stomach is stronger than mine. Thank you for sharing.
June 26, 2017 at 6:32 pm
I don’t believe we are about to experience a sharp drop in SPX as a matter of fact I think markets will probably keep moving higher in the near-term.
My trade is a bet that SVXY has very little room to run higher over the next several months due to 30-day synthetic trading near 11.70.
June 26, 2017 at 6:38 pm
I sold 3 of July 21 strike 180 for 2.00
June 28, 2017 at 1:27 pm
Hi Limitless, SVXY will undergo forward split (2:1) on July 17, does this going to affect my current option position ? ie: STO 20 SVXYCALL @ SEPT,195 strike ; BTO 50 SVXYCALL @ JAN 2018,120 strike. Appreciate your input on the matter. Thank you
June 28, 2017 at 5:05 pm
my assumption is that everything gets divided by 2 with the exception of the number of calls which will be multiplied by 2.
Nothing will happen to P&L profile.
June 29, 2017 at 5:33 pm
Limitless, it seems today is your day for opening positions.
June 29, 2017 at 9:28 pm
I was busy with personal stuff so no trades for me today, but even if I wasn’t busy I still would not have opened any VIX-related trades.
One-day drops with violent reversals are very rare events, despite the fact that markets experienced a couple of those lately. I prefer entering positions after a sustained period of weakness in order to catch a potentially bigger move.
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