$VIX now a free trade
If go back and look at how I have been dancing around my $VIX call spreads that expire next week, 10/20, you'll see that at one point I took of the short leg, $30 calls, and took in that premium, the, I shorted the $19s to create a debit spread and then close them out to take in that premium, now, today, I just sold more calls.
Sold the $23.50 calls for $1.00 each.
That means that by patiently and carefully timing the trades on collecting premium, my call spread is now entirely paid for so in the worst case next week it's $0 in P&L...but it cost me nothing.
In the best case it is a max payout of $3.50 * my quantity of call spread combos, in my case, 1000, or $350,000.
So in short, the $VIX spreads are protecting all my longs that are underwater and if the VIX really spikes next week they will net me $350,000 offsetting any further draw down in my longs.
If go back and look at how I have been dancing around my $VIX call spreads that expire next week, 10/20, you'll see that at one point I took of the short leg, $30 calls, and took in that premium, the, I shorted the $19s to create a debit spread and then close them out to take in that premium, now, today, I just sold more calls.
Sold the $23.50 calls for $1.00 each.
That means that by patiently and carefully timing the trades on collecting premium, my call spread is now entirely paid for so in the worst case next week it's $0 in P&L...but it cost me nothing.
In the best case it is a max payout of $3.50 * my quantity of call spread combos, in my case, 1000, or $350,000.
So in short, the $VIX spreads are protecting all my longs that are underwater and if the VIX really spikes next week they will net me $350,000 offsetting any further draw down in my longs.