Selling 8/21 VXX $60 calls @ $0.48
Realized gain of $0.06 (14.29%)
Options are used for juice. The VXX moved maybe 2% but my options gained 14%! Part of that is a feedback loop wherein higher volatility means higher options prices. So betting on higher volatility with options gives me double juice on volatility increasing.
I still believe this trade could work (and am holding a few contracts just in case), but couldn't resist locking in a double-digit percentage gain on a vast majority of the position.
14.29% x 0.50% = 0.71% portfolio return
Annualized-ish = 0.71% x 200 = 142.90%
Not that I'm implying this kind of money can be made every single day. But just that consistently making modest amounts of money is nothing to sneer about. It adds up over time.
Realized gain of $0.06 (14.29%)
Options are used for juice. The VXX moved maybe 2% but my options gained 14%! Part of that is a feedback loop wherein higher volatility means higher options prices. So betting on higher volatility with options gives me double juice on volatility increasing.
I still believe this trade could work (and am holding a few contracts just in case), but couldn't resist locking in a double-digit percentage gain on a vast majority of the position.
14.29% x 0.50% = 0.71% portfolio return
Annualized-ish = 0.71% x 200 = 142.90%
Not that I'm implying this kind of money can be made every single day. But just that consistently making modest amounts of money is nothing to sneer about. It adds up over time.
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