Option play question

1

11Blade

Can some of you options mavens point out the weakness in this trade.

My short term outlook is bearish, long term is bullish.

long 1000 VLO at 61.90
short sept 62.50 calls 10 @ 3.40 bid
long aug 60.00 puts 14 @ 2.40 ask


It will be problematic after august expiration if VLO is above 60.00 and then falls after the puts have expired.

I'm just playing around with options right now, no real trades, just paper, your input would be great
 
With VIX (new vix) at record highs I would be more likely to play all short options...IF you are short term bearish/long term bullish here's what I might looks at

long 1000 sh VLO at 61ish
short 20 VLO 60 calls AUG (Your expecting stock to possibly take a hit in AUG thus a modest bear position)
short 10 VLO puts SEPT (expecting VLO to get bullish in Sept..thus a modest bull position)

obviously if your incorrect in your assumption have a plan for your exit!

A calendar is another way to play short term bearish long term bull, however calendar's work better in a lower vol environment.
 
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