Recommended trade entry for Thursday, January 18
Today's suggested trade entry will be:
SELL VXX January 26 29.5 Call, currently .46 credit. Delta of short call .25.
BUY VXX January 26 34.5 Call, currently .17 debit.
It is recommended to place the order as a single entry: SELL " Vertical".
Current mid price for both legs: $.29. Sometimes it may be necessary to cave by .01 or so in order to get filled, but it is not recommended to open the position unless you can get $.25 credit. The margin on the trade will be the width of the spread ($500), less credit received.
Update will be posted with exact position details when the trade is opened.
As always, stay keen on your risk management and trade carefully,