Stock / Symbol: IPATH S&P 500 VIX SHORT TERM / VXX
Option Strategy: [private_monthly]broken wing butterfly (originally)[/private_monthly]
Trade entry date / price: 3 Mar / $27.00
Price at this adjustment: $22.40
Current Position:
[private_monthly]
Long 2 VXX Apr15 27 calls
Short -4 VXX Apr15 30 calls
Long 2 VXX Apr15 31 calls
[/private_monthly]
Reasoning: The current trade is going to expire worthless today. Going to see if we can salvage this trade by moving to a vertical call spread. We'll look to exit at / near breakeven on the trade. Greeks will be: 44.2. Delta; 0.41 Theta, and 0.2 Vega
Trade Adjustment Details:
[private_monthly]
BTO 2 VXX May15 22 calls
STO -2 VXX May15 24 calls
for a max net debit of $0.67 per contract. The mid is currently at $0.63 (day order, limit order). Try for the mid +0.01.
[/private_monthly]
Max Risk: $250 (up from $122)
Max Reward: $150 or 60% at/over [private_monthly]24[/private_monthly]by Apr 17th
Profit Range: at/over $23.30 by May 15th
Suggested Downside Stop: NA
Suggested Upside Stop: @ $25
