Recently an investor wrote me regarding his purchase of VIX Index calls that expire Feb 19 and which he has neither rolled or sold to date. Let’s look at the issue and see what we can come up with.
Teddi, I am currently holding Vix Feb 19 $13C. At issue is when these should be rolled further out in time. I have almost two months to go, but currently under water by 56%. Should I let things play out and let them expire while hoping for a correction or pull back between now and expiration on Feb. 19? Any advice would be appreciated. (Here are the positions) Bill
- 10 contracts of Feb 19, 2014 $13 calls
- Purchases at $4.52 per share
- Purchased on Oct. 18, 2013
Before looking at some rescue ideas we should review what happened and why this trade failed, to learn from the mistakes and not repeat them.
VIX Index Call Options Strategy Rescue Ideas
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