VIXY Bearish inclined Naked Calls 17 June Expiry
Updated
- Whats The Plan/Trade/Thought
- For some reason the VXX options contracts seems to require a lot of Margin/BP to develop a decent premium. As such I decided to look at other VIX related ETFs and found VIXY well priced and from my research has a closer correlation with the VIX
- Over the past year of trading options i’ve come to realised that I’m really trading volatility in the different sectors. This trade is my hedge trade and while I believe we are in a bearish situation now, I believe we will be ranging at least for the time being. Hence I am somewhat not directional with VIXY
Risk Mitigation - I have two S&R points for this trade with the key S&R 1 at 26.64. This will be my guard rails and reaction points for risk mitigation
I Feel - I feel comfortable on this trade, I’m somewhat still feeling the effects of last month. But I cannot let that influence me
Imagine Yourself Taking The Other Side - This is a possibility given that I am not directional but I could only mark one S&R point
Look For New Information - By selling Calls, I am accepting that there won’t be a steep reversal
How Do I Feel Now - Clear on why I have taken this trade
Trade Specs - Sold 255 Calls @ 0.27 - Strike 27
- 46.26% to Strike
- BP Used 85K
- Max Gain $6630
Trade closed: target reached
Yay!
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