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Hedging with 50 cent VXX long calls.
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Don Smith
Posted 6/21/2018 17:38 (#6826259)
Subject: Hedging with 50 cent VXX long calls.



Centre county Pennsylvania, USA
VXX is a popular (high volume) VIX ETN. VIX is a stock market volatility index. So, VXX long calls may be an efficient hedge for stock market volatility.

A recent example of that hedge is shown in the attached chart. It shows that premium at end-of-day June 17 2018 for VXX 42 calls, with expiration date July 20 2018, have increased 133% over the most recent 5 market day period. For long calls thats an (unrealized) profit of 133% (less bid-ask spread, commission, and other fees). Strike In this example was chosen for premium closest to 50 cents (50 cent VIX call trader strategy).



(VXX, 5 daY PERFORMANCE (full).jpeg)



Attachments
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Attachments VXX, 5 daY PERFORMANCE (full).jpeg (60KB - 126 downloads)
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