The Money Tree

Safely Generating Income in Retirement

Update – VXX

Posted by mounddweller on April 20, 2012

Fellow Traders,

Mr. Market is still refusing to cooperate with regard to my VXX trade.  As you’ll recall back on 2/29 I sold 5 MAR $22 puts for $0.50.  VXX at the time was at around $24.75.  Since then the VIX and VXX have continued to fall.  Consequently, I have been rolling out my puts, each time for a net credit.

Today, I bought to close my 5 APR $22 puts for $4.40 and sold 5 MAY $22 puts for $4.95, a net credit of $0.55.

So today here’s where I stand in this trade.  My plan is to continue to roll this out until VXX recovers back to $22.  Thus far I have a total net credit (after commissions) of $1,007.12.  That’s a 9.56% ROIC.




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