VIX trade for 8/18 exp

[atticus]

Quote from SrRuthenate:

Going to rephrase my question to: What's the best way to play this ALLIN with a certain maximum bound risk?. I.e.: I put it on, go to another planet, come back on Sep 20 and my position is intact, no broker liquidations, no exchange excuses, no nothing. I exit when I want after Sep 20th. Those calendars look nice, but aren't bound.

Think like, you are the small stack in a 3way at a poker tournament, get a playable hand and push allin, you are going to get called, but you will not be pushed out of the hand till the river is dealt. At the river, you go home, or you get to play the next hand with 2x or 3x your current stack.

I was referring to an SPY/SPX calendar, not a VIX futures calendar (switch).

 

[len_len27]

Quote from len_len27:

Need your help. I followed your trade two weeks ago, buy the VXX Sep11 42 Put and sell the VIX Sep11 42.5 Put. It is down $250.00, what should I do?

out at $272 loss.

 

[atticus]

Quote from len_len27:

Need your help. I followed your trade two weeks ago, buy the VXX Sep11 42 Put and sell the VIX Sep11 42.5 Put. It is down $250.00, what should I do?

I didn't mention that trade.

I don't spread VIX vs. VXX in options and the only Sep trade (still holding) is profitable. In fact, all but one (dime loss) VIX trade in this thread has been profitable. The 20/35/50 fly for SEP is the only remaining position, also up on marks.

 

[tradingjournals]

Quote from sellindexvol66:

brains, my point in being sarcastic is that you should not be trading vix products if you cannot clearly see a correlation between a spx severe drop and corresponding vix increase.

your best bet is following atticus's vix trades before you try anything there. without learning convergence, which options trade off the futures, etc..you will be simply giving money away.

I have not looked at VXX in the past, but I have looked at it recently, and I like what I see. What are the things you think must be known about this instrument.

In my view, I think of VXX as a two regimes thing: when low, sell puts when high, and calmed down, then go long XIV. What do you think of this since you seem to have VXX as your bread and butter type of instrument?

 

[tradingjournals]

Quote from len_len27:

out at $272 loss.

You were long volty above forty? That is asking for trouble.

 

[len_len27]

Quote from newguy05:

dipping my toe in this vix thing, since everyone seem to be playing with them. trying out some trades:

1 VXX Sep11 42 Put $5.05
-1 VIX Sep11 42.5 Put $9.90

Sorry ..... I posted to wrong thread. the above trade was another thread two weeks ago.. I copied his trade. All over now.

 

[SrRuthenate]

Quote from atticus:I was referring to an SPY/SPX calendar, not a VIX futures calendar (switch).

OK thanks. The way this calendar works is I pick a strike near the target I estimate, and then put on the debit calendar (the debit is my max risk?). And then when near target price is reached I can exit or roll the thing to a lower strike if still bearish?. Any advantage on using puts over calls?. Any other tactical advice?.

 

[tradingjournals]

Quote from SrRuthenate:

OK thanks. The way this calendar works is I pick a strike near the target I estimate, and then put on the debit calendar (the debit is my max risk?). And then when near target price is reached I can exit or roll the thing to a lower strike if still bearish?. Any advantage on using puts over calls?. Any other tactical advice?.

You are also betting on volty. No difference between put and call if cost of carry is zero (and europe exercise). OTM calls/puts is better to reduce bid/ask spread.

 

[SrRuthenate]

Quote from tradingjournals:You are also betting on volty. No difference between put and call if cost of carry is zero (and europe exercise). OTM calls/puts is better to reduce bid/ask spread.

For some stupid reason, maybe too much alcohol, I can't wrap my brain around the reward-risk profile of these SPY calendars, and when to exit them, roll them, etc. I'm getting old fast.

 

[atticus]

Forgot the post the offset, but today I closed half of the 20-50 fly at 9.30 for 1.50. Holding the rest to 10-11.