Jul 172014

– BUY CALENDAR VXX 100 AUG5 14/JUL4 14 28 CALL @1.17
Getting in another volatility index calendar. Just closed a successful one on the VXX and thought I’d get in on a new one. The VXX has been bouncing off the 27 range and I could see a little bit of added volatility within the next month so I’m looking for the range to stay around 28 but there is a lot of world tension right now that popped it.  Tomorrow it may drop right back down if there isn’t any new news.

7/22/14 – SELL CALENDAR VXX 100 AUG1 14/JUL4 14 28 CALL @.41
Rolled my Jul into Aug on a limit order.

7/30/14 – SELL CALENDAR VXX 100 AUG2 14/AUG1 14 28 CALL @.38
Rolled it…

8/8/14 – SELL CALENDAR VXX 100 AUG5 14/AUG2 14 28 CALL @.10
Had to bail on this one. At least I got out with a little credit on the close. Getting to risky with the price going above 35 with my strike at 28. It was so far out of the money that I couldn’t really roll it into the next week without risking a bigger loss considering all the geopolitical tension. I could have rolled it for free with the expectation that it would come back down into a good range of around 30-32ish but those chances are gone in my mind right now.

So bought it for 1.17 and sold it for .82 for a around a %30 loss. DOH!  Won’t be doing calendars in VXX probably for a long time as the market slowly moves down and money moves into other areas.