BOUGHT VXX SEPT 16TH 13/MAY 13TH 18 SHORT CALL DIAGONAL
Layering on another long volatility setup here on this dip below 17.50 in VXX. (See Post below as to how to work this "poor man's covered call").
Unfortunately, there are virtually no metrics to provide with a diagonal, such as probability of profit, since it will vary depending on how much credit you collect during the life of the setup, when and how much VXX pops during its "lifetime", and when you chose to take your money and run ... . The one metric that can be provided is the fact that this setup cost $413/contract to put on, which is the extent of your loss if you allow your long call to expire worthless in September (in which case VXX would have to be below 13 at expiration). Naturally, I intend to bail long before that ... .
Unfortunately, there are virtually no metrics to provide with a diagonal, such as probability of profit, since it will vary depending on how much credit you collect during the life of the setup, when and how much VXX pops during its "lifetime", and when you chose to take your money and run ... . The one metric that can be provided is the fact that this setup cost $413/contract to put on, which is the extent of your loss if you allow your long call to expire worthless in September (in which case VXX would have to be below 13 at expiration). Naturally, I intend to bail long before that ... .
