BUY CALENDAR VXX 100 JUN 14/MAY 14 40 CALL @1.34 LMT
Here’s a Calendar trade that has a lot of Theta (time) value. Stock is trading at 39.90 and my strike will be at 40 with the calendar expiration at 46 days out. If you look at the pricing from the short month to the next month it shows the potential profit on the roll is over $.40 with up to 4 chances to roll before expiration, if the stock stays in the 40$ range.
5/16/14 – I did role this front month option and will do that again at the beginning of the week when hopefully the VXX is up, which means the market will take a fall. Basically will wait a few days for the VXX to surge higher to get more of a credit.
DISCLAIMER - JVOND SUCKS AT INVESTING! FOR LEARNING PURPOSES ONLY!