Comments on: VXX Chart – Solid Support http://mytradersjournal.com/stock-options/2010/07/21/vxx-chart-solid-support/ Investing in Stocks Through Options Sun, 20 May 2012 05:09:47 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Alex Fotopoulos http://mytradersjournal.com/stock-options/2010/07/21/vxx-chart-solid-support/#comment-6895 Alex Fotopoulos Thu, 22 Jul 2010 18:39:28 +0000 http://mytradersjournal.com/stock-options/?p=5196#comment-6895 John, Do you mean you are selling VXX PUTS, not CALLS? John,
Do you mean you are selling VXX PUTS, not CALLS?

]]> By: oscarwildedog http://mytradersjournal.com/stock-options/2010/07/21/vxx-chart-solid-support/#comment-6894 oscarwildedog Thu, 22 Jul 2010 16:44:59 +0000 http://mytradersjournal.com/stock-options/?p=5196#comment-6894 Alex, Due to the reasoning that I am not comfortable with the consensus $96 in earnings for the S&P in 2011, I am selling VXX calls (starting at $21 and moving down) all the way out to the Jan12 LEAPS. Obviously, I wouldn't mind owning the VXX at these levels, but the main thrust is this: due to the heavily correlated gamma/delta move (in my favor) everytime volatility spikes, I am getting anywhere from a 4:1 to 10:1 ROI. For example, if the S&P sinks 5% then, depending on the month, I will get a 20-50% ROI on the VXX should I decide to buy them back. I can do this over and over again. Best, John Alex,

Due to the reasoning that I am not comfortable with the consensus $96 in earnings for the S&P in 2011, I am selling VXX calls (starting at $21 and moving down) all the way out to the Jan12 LEAPS. Obviously, I wouldn’t mind owning the VXX at these levels, but the main thrust is this: due to the heavily correlated gamma/delta move (in my favor) everytime volatility spikes, I am getting anywhere from a 4:1 to 10:1 ROI. For example, if the S&P sinks 5% then, depending on the month, I will get a 20-50% ROI on the VXX should I decide to buy them back.

I can do this over and over again.

Best, John

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