I capitulated on a bear put spread in VXX.

music selection:  “With A Little Luck” — Wings

On 12FEB2020, I entered the 16/17 strikes VXX bear put spread (28FEB2020 expiry) for 92 cents a share.  I bought 20 spreads.  On 20FEB2020, I began to rethink the wisdom of a short term trade in contango with such little upside potential and asked 96 cents to close the spreads.  I got that on 5 spreads and probably should have taken 95 cents to close the entire lot.

Corona Virus has the markets in a nose dive and VXX is spiking.  Now that the spread is completely out of the money, I decided to take anything I could get rather than risk a 100% loss.  I got 29 cents for the remaining spreads today.  My net loss is 1,795 on 1,840 capital at risk.

I continue to hold the underlying shares short and will continue to hold my 13 strike put with 21JAN2022 expiry.  I expect both to finish well in the green by the time I close them.

I don’t like blogs that report their winning trades and just sweep the losing ones under the rug.  I think that gives a false sense of what can be achieved (and what is at risk) with active portfolio management. I think my overall results speak for themselves but it is also clear that I am a fallible lizard who sometimes steps in bronto sp. poo. Hope you find the transparency useful.

Devour your prey raptors!

Corona Virus strikes the Raptor

Never miss another opportunity to devour prey!

2 thoughts on “Corona Virus strikes the Raptor

  • February 25, 2020 at 9:40 pm

    I submitted an order for a VIX bear put spread yesterday, but did not catch a bid. Good thing in hindsight! However VIX rarely hangs out at these high levels for long.

    • February 26, 2020 at 2:58 pm

      The BPS was essentially done for after the previous day’s price action. The conventional short and the long dated put look like sure bets to me.


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