DJP trade ideas
$70 -$90 July bullish call spread x 73,474 Doomsday all world trade will cease. Adds to 25k in OI. $VIX $VXX $UVXY $TVIX
VXX next short setupPlanning to get into short positions at the upside green rods, for a test of the downside green rod.
Monday pullback ,picking up later into the dayForgive me, it's getting late and I just wanted to get a projection out before the markets sessions.
Uh, no cryptos on this one, just straight equities market. Watch for VXX to break above 35.00 today. If we hold it, expect the rally(VXX) into later parts of the day.
VXX Short setup loomingClarified the previous chart. Think we might get opportunities as early as 44, but all the way to 46.5
VXX - Call Credit Spread - Trade Journal After the fact. Personal trade record. Closed position (limit order executed) today that I opened on 4/3.
Opened on 4/3 for $1.40 credit
CREDIT: $140
MAX POTENTIAL LOSS: $500 - $140 = $360
44 days till expiration, but had no intention of holding till expiration. Ideally, wanted to close position within 25-30 days.
Entered a limit order to close the position .60 debit. Order executed at .57.
13 days actual holding period. .83 profit.
VIX VIX is looking weak. No demand volume in this rally. Watch the 56 level for a reversal (bull trap) to the downside, which is positive for the indices - ES, NQ, YM etc
Use VXX to figure out direction of the marketUse the VXX as a tell instead of buying blindly. Time the buys/sells using VXX. Much safer to buy stocks when volatility is dropping.
VXX Double TopVXX is forming a double top on the 15 and five minute charts. The divergence of indicators and price action can be seen on the five minute chart.
VXX - Bear Debit Put SpreadUsed some of the income received from Credit Call Spread to pay for a Debit Put Spread. While I rarely used debit option spreads, I think this might be a good situation to employ this strategy.
I choose the 2/16 options (9 days), which is a short time frame for a debit strategy. Initially, I thought 9 days would be enough time, but it maybe too short even for the rapid decline I am expecting. I potentially may roll these out to 3/2 or 3/9.
Greeks
VXX $41.70
$39P Long
D: -.3199
G: .0486
T: - .1483
IV: 138.39% (vs. 113.46%)
$35P Short
D: -.1387
G: .0301
T: - .0922
IV: 128.30% (vs. 113.46%)
Spread:
D: -.1812
G: .0185
T: - .0561
D:
Combined positions
W:
VXX - Bear Credit Call SpreadThis is purely my trading journal, not investment advice. Especially with the screwed up and questionable nature of these volatility ETF & ETN created products, risk is even higher. Trading options of one of these products is buying/selling derivatives of an underlying product that is based on futures of a derivative.
I closed my previous call spread. Took the money and ran not risking something crazy happening before expiration. At the same time I opened another call spread expiring 2/16. I lesson the spread, which reduced the income I receive, but also lesson my overall max possible loss should the trade move against me. To me, these near date options are very expensive right now. If price should continue up, even with the options having a short expiration date, I should have the ability to roll or adjust my position early next week if needed.
Spread is 52 - 62.
While is tempting to open another credit call spread as price has moved higher, I don't want to be exposed to additional risk.
Regarding my the bear debit put spread i opened (another post), in hind sight that was a poor decision. The good thing is since I used premium received from the first credit call spread, I didn't use any of my own money for the trade. IF the price moves significantly lower early next week, I should still have the ability to roll & adjust the spread for minimum cost. However, with the current price gap of the first and second month VIX futures, price may not move enough for a roll/adjust to make sense for the put spread.
W:
VXX - Risky bear credit call spreadOpened bear credit call spread to hopefully take advantage of the high IV% and time premium. As long as market vol remains fairly stable for the rest of the week, I'll be in good shape. The very high time premium on short dated options means I am only at risk for a short period of time. It is atypical to be able to capture this amount of premium for options about to expire. The down side of trading short dated options is it is very hard to make adjustments if the trade goes against you.
VXX 16.77% $50.23
D: .2382
G: .0528
T: -.2314
IV%: 253% (vs. 112.52%)
W:
OPENING: VXX MARCH 2ND 26/29 LONG PUT VERTICAL... for a 2.18/contract debit.
Metrics:
Max Profit: $82/contract
Max Loss: $218/contract
Break Even: 26.82
Notes: Adding some on this little VIX bump we have today. I don't think there's a new weekly opening up this week (monthly expiry), so adding a smidge here in the expiry nearest 45 DTE. As always, staying small, keeping powder dry to add on pops ... .
Lack of Robustness Hi guys. I wasn't going to short this but I can't resist imho. A small position couldn't hurt I meeklu think. Good luck if you try.
Idea of the CurveHi guys. Here's my idea of a low risk trade on VXX. No curve no deal imho. Thank you for taking a look.
SHORT IPATH S&P500 VIX (VXX)Entry: $50
T1: $30
Stop: $60
extra info:
IF targets did not hit in 4 weeks the position gets closed at market price.
IF target hits 5% we sell 50% of the stock.
VXX is in the window for a good Put trade. Go out of the money 10% and spread $5 to neutralize the vol crush, and enjoy the profits.
