lc_match-aka-Bill

Adios, but try this: http://finance.yahoo.com/news/reversal-stock-market-volatility-ahead-192315794.html

Heh! Reverse split in VXX coming again. http://eon.businesswire.com/news/eon/20131025005924/en/iPath%C2%AE/S%26P-500/VIX

Or put it this way, nobody knows more about failure than I do.

Yeah, I'm waiting for 2008 again. I know that Hans. Thank you.

'Lazy and brainless' simply because the strategies of the 16 put spread for a 0.50 credit or more in low volatility, the 17 call spread for 0.50 or less in flat/backwardation (for the VIX) and buying 3-months out puts on a 10% VXX spike simply require no anlaysis, adjustments, nor much of a worry. For myself, I end up away from the keyboard at key times and always seem to get creamed because of that. These trades are robust and predictable, as much as anything I've seen in options. If anyone has a more robust trade I'm all ears.

I dunno. I bought puts on the first 10% vxx spike last week, added full positions the next 3 days. Yesterday everything was down big time. After today all positions are up 8% or more. It's lazy and brainless and commission-efficient. I like that. I'll probably close them tomorrow morning, travelling today. Another guy I follow is 'lazy-trader'. It works. I know, VIX could stay high for 3 months. Always some risk, and I'll take that risk. Better than a RUT calendar with RVX at 25.

VXX has spiked 9% in the last week. I have initiated 1/3 a VXX Jan put position.

Glad you understood I meant VIX.

The Nov/Dec futures prices have flattened recently, and the Nov/Dec 17 call calendar is quoted 0.50-0.60. We've played this before with the idea that the call calendars usually go for $1.00 or more. Any opinions on whether this is a good deal?

Wow! I didn't know you were looking at Sept/Oct....I was looking at Oct/Nov...it's nice to have some room to run.

Thanks for editing the decimal point. Had to check my medication. I'll wait for better. 0.40 is my threshold for a third of a position. Bought lots of VXX puts when it was 16-17, liquidating in stages as profits go above 8%.

They're most likely going to lose one.

Somehow I sold 2 verticals today after reading the 6 pages of IB stuff on the Forum from last year and this. Sold 1 using a positive limit, got the market; sold 1 using a negative limit, got the market. Lots of fun.

Depending on which buttons you push, you get different spread builders. Watching the webinar I learned to first, after opening the Options Trader to immediately customize and 'Add Remove Toolbar' option. That gives you a top row of buttons in which you can click on 'Option Spreads' which brings up the tool Marco posted. Then you can choose to Buy or Sell a vertical.

Thanks for your help. I'll get there. Apparently I'm in a different tool.

So I see. How about a bear call spread? I'm in their spread trader, selecting strategy, expiry, strikes, and the vertical spread will only do bull call? Hints? I'll get back on the webinars this PM.

Yeah, that helped, both thanks. Finding the combo spreads was somewhat non-intuitive.

Mostly I've used TDA's stuff---their simple text-based order entry, including spreads, and then their Trade Architect which is really quite convenient. I'll use TOS a bit, but my monitor is small--a problem. Don't think I've ever needed a help screen. So I got an IB account and feel like a fool. I'm having huge problems navigating. I did manage to buy a RUT vertical, but the only way I can find to sell it would be 1 leg at a time. And pricing the spread was a pain...I just looked over at TDA to do that because all IB would show was the bid/ask of the individual legs. So 2 obvious questions: 1. When you're originating a spread, can IB quote you the spread price (not just the bid/ask of the options?) 2. In disposing of a position, is there a way to do it as a spread? I've got about 9 hours of their webinars downloaded, so I'm headed there, just thought I'd ask.

Per Scott Murray at Volatility Analytics, I bought the 12 Sept call on VIX for 3.00 yesterday. Sold it for 4.30 this morning. I like the simple plays.

Did a couple of 'what ifs' on the VXX BWB. On weeklies it looked like commission and slippage would kill it...it's only a $14 stock. It seems to me (and I'd like to hear your opinion) that it needs to also be a longer-term play, say at least 2 or 3 expirations out. Yes? Then the other question I have is: is there a better or worse time to put it on? On a spike? On a drop? No matter? The Seeking Alpha article from last year had VXX at 30 (ah, those were the days!), and they rolled a couple times. Never was a conclusion as to whether or not they made money.

Mikael, that looks like it's good for an adrenaline rush. And actually probably not too bad a play if you had a read on futures. It would be over quickly and worth a few pennies one way or another. If you had a pile of cash and nothing to do on Tuesday and Wednesday.... Nah. I mean, wasn't that Augen's big deal on Yahoo and pinning? Go short a straddle at expiration to take care of the afternoon IV collapse and pinning. It's not a trade in my future, though. I have been very pleased to find 3 workable strategies at SO. VXX (VXX long put DITM and far out) was a logical extension to my own 'buy VXX puts on a spike' strategy. The farther in the money and out in time just decreases the excitement and increases probability of a profit. The VIX 16 put calendar and 17 call calendar are proven performers. (I'm currently holding a bunch of the 16 put calendars from August--they're still profitable but waiting for the infamous spike 'everyone' is predicting.) I am trying to resist over-trading in the volatility area. It has cost me; that is, the desire to "do something." Sometimes nothing is the best thing to do. These 3 strategies are unlike some of Scott Murray's trades (Volatility Analytics, as mentioned by Saud). Although I like Murray's stuff, many of his trades are attempts to get lottery tickets. I am unlucky. I never win. The VIX butterfly is a bit like that. I like these 3 SO (so far) strategies because they make use of quantifiable attributes of VXX and VIX. The trades are triggered by events (price levels) which virtually guarantee their profitability (or at least limit risk to a very, very small amount). They are, in fact, the opposite of lottery tickets.

Do I interpret the spreadsheet correctly if, I see 7 plays on TIF and: 1. I take an average of the "Open Price" of about 5.96 as dollars per straddle (2 shares actually), or $595 per straddle contract. 2. I take the average of the "P/L" column as 15.9 as the per-contract profit and loss. (Or $0.16 per straddle) So if I played 5 spreads (neighborhood of $3000 average) I'd average about $75-80 profit before commissions? If so, this is useful information. Thanks guys.

What was the original "adjustment" intended to accomplish in terms of trading strategies and greeks? And what will be the intention of tomorrow's roll?

Yeah, OK, I can see Kim's point. My ASSUMPTION would be that we treat it as a unit. If we're happy letting the short expire and the long option run, well, OK, I get it. It's just an unusual strategy for SO. But, then, unusual situations call for creative (if traditional) solutions. I'm in.

Help me get an education, folks. I understand "buy it as a spread, sell it as a spread," delta neutral trading, etc in theory. It's the practice I have trouble with. On this spread, we sold the Jul 450 call for about $17.00 and it's now worth about $0.70. With the stock around $400, digging out of our hole can only be done by the long 450 (Aug). It seems to me that the short call can only hurt us if the stock pops, and with a delta around 6% won't make us much if the stock keeps dropping, especially considering the 15% delta on the long. Why wouldn't we close it? What am I missing?