VXX Calls - 14 May Expiry
This is the second part of my May trade and I attempt to break up my holdings.
VXX is based on the volatility index and is an inverse reflection of the S&P500. Currently, the market is pretty bullish and I expect it to continue at least for the next month. My strategy is to not go for the high-risk, high-reward trades. But steady high probably trades that I can compound on.
My 20k loss in Feb, showed me that for my strategy, its better to cut my losses fast and small if I get a hint that things are not panning out. As a small loss is easier and faster to gain back especially since I structure my trades monthly. A huge loss just means more months required to paying back...
My strike is also pretty far away and should be well padded.
Sold 130 Calls @ 0.25 Strike 17
BP Block: 37K
Max Gain: Est $3,250
% Distance to Strike: 74%
ATR is also low which means volatility is pretty passive
VXX is based on the volatility index and is an inverse reflection of the S&P500. Currently, the market is pretty bullish and I expect it to continue at least for the next month. My strategy is to not go for the high-risk, high-reward trades. But steady high probably trades that I can compound on.
My 20k loss in Feb, showed me that for my strategy, its better to cut my losses fast and small if I get a hint that things are not panning out. As a small loss is easier and faster to gain back especially since I structure my trades monthly. A huge loss just means more months required to paying back...
My strike is also pretty far away and should be well padded.
Sold 130 Calls @ 0.25 Strike 17
BP Block: 37K
Max Gain: Est $3,250
% Distance to Strike: 74%
ATR is also low which means volatility is pretty passive
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