ROLLING JUNE 17TH, JUNE 24TH VXX PWCC SHORT CALLS OUT ... .
These short calls are both parts of poor man's covered calls (PWCC's) in VXX, the long-dated long calls of which are in the September expiry ... .
The June 17th 18 call had lost over 65% of its value, so I opted to roll it here to the July 8th 15.5 short call (as close to the 75% probability out-of-the-money strike as I could get) for an additional $68/contact in credit.
Similarly, the June 24th 18 call had also lost over 60% of its value, so I rolled it to the July 15th 16 short call for an additional $56/contract in credit.
Although it's great to be collecting credit along the way, as with any covered call -- poor man's or otherwise -- you will need price to increase above your cost basis to bail on the trade profitably ... . At the moment, I'm looking to exit the current setups for what I originally paid for them, essentially keeping the credit collected as my profit. However, as we near that September expiration (it's still a bit of ways away), I may have to look at what my scratch point is for each and possibly settle for less if we don't see a pop soon here ... .
The June 17th 18 call had lost over 65% of its value, so I opted to roll it here to the July 8th 15.5 short call (as close to the 75% probability out-of-the-money strike as I could get) for an additional $68/contact in credit.
Similarly, the June 24th 18 call had also lost over 60% of its value, so I rolled it to the July 15th 16 short call for an additional $56/contract in credit.
Although it's great to be collecting credit along the way, as with any covered call -- poor man's or otherwise -- you will need price to increase above your cost basis to bail on the trade profitably ... . At the moment, I'm looking to exit the current setups for what I originally paid for them, essentially keeping the credit collected as my profit. However, as we near that September expiration (it's still a bit of ways away), I may have to look at what my scratch point is for each and possibly settle for less if we don't see a pop soon here ... .