Yeah....VIX/VXX doesn't seem to want to stop. near
Post# of 128
Yeah....VIX/VXX doesn't seem to want to stop. near historic lows. Holding onto my June 18 Calls for a bit longer, but down on the position, and if I was really using Technical analysis for my entries and exits like I NORMALLY do, I would have been out. Breaking a few of my rules.
That 16/18 Bull Call spread should pay out pretty well. I would wait until the entry presents itself. Most of the money is made on those positions the last month because if VXX is above 18 and both legs are ITM then the money is made by riding out the remaining time premium erosion on the shorted 18 leg. So, if you open, you are looking at having to hold until expiration. Have patience with it. Much like my AAPL 330/335 April Bull Call spread. I have had it since late January, but really need to hold until expiration. The only difference is that since AAPL is SO deep ITM at this point, the spread is worth more now than it normal would be at this time in its life.
The overall Market broke through topside resistance today...and obviously wants to trend up regardless of news and earnings to the contrary. That is why I am holding onto my VXX Calls just a bit longer. Breakeven at June Expiration is $25.33. I still think my chances of hitting that by then are good. If I played this in my usual swingtrade fashion, I probably would have sold after the first day when it topped $26 and would have had some nice unrealized profit. Hindsight is always 20/20.