On Friday I sold the Aug 1300 put for $1.30. As the market opened down, as feared the VXN index opened down as well. Within a few minutes of trading it quickly became apparent that even a lower NDX couldn't help the volatility index from diving lower and lower. With only about 25 days until expiration, it is highly unlikely that it will be worth placing any further Aug trades due to a lack of premium. The market's uptrend looks like it may continue for a while. I am hesitant to sell the call side (remembering the Jul 1550 call), because this market seems like whether the news is good or bad, it will continue to climb.
Index level: 1579.60
Sell to open: 1 Aug 09 1300 put
Credit received: 1.30
Initial Margin req.: $12,992.50
Commission: $1.25
Net credit: $128.75
Days to expiry: 27
Simple return: .99%
Yield: 13.40%
% to ITM: 17.72%
Probability of expiring ITM: 2.28%
Mmkt equivalent earnings @ 1.55%: $14.90
Please view my disclosure on the bottom of this blog
Year End Summary – 2021
3 years ago
