TRADE IDEA: VXX -16P/+18P/+18C/-20C SUPER BULL
I'm not hugely fond of going long volatility, particularly in an instrument that gets routinely battered by contango and/or beta erosion.
With VIX closing in on its 2019 low, however, it may be time to consider one.
Pictured here is a VXX "Super Bull" made up of a 16/18 short put vertical and a 18/20 long call vertical. As of Friday close, it pays a small .11 credit, has a 2.11 max profit, a 1.89 max loss, and a break even of 17.89 versus 18.87 spot, with max profit assuming a finish above 20.
You can also go smaller -- the 17/18/18/19 pays .07, has a max profit of 1.07, a max loss of .93, and a break even of 17.93.
Look to manage aggressively starting at 25% max ... .
With VIX closing in on its 2019 low, however, it may be time to consider one.
Pictured here is a VXX "Super Bull" made up of a 16/18 short put vertical and a 18/20 long call vertical. As of Friday close, it pays a small .11 credit, has a 2.11 max profit, a 1.89 max loss, and a break even of 17.89 versus 18.87 spot, with max profit assuming a finish above 20.
You can also go smaller -- the 17/18/18/19 pays .07, has a max profit of 1.07, a max loss of .93, and a break even of 17.93.
Look to manage aggressively starting at 25% max ... .
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.