Recommended trade entry for Thursday, February 1
Today's suggested trade entry will be:
SELL VXX February 9 32 Call, currently .40 credit. Delta of short call .19.
BUY VXX February 9 37 Call, currently .13 debit.
It is recommended to place the order as a single entry: SELL " Vertical".
Current mid price for both legs: $.27. It is recommended to get filled at the mid or few cents below, but it is not recommended to enter the position unless you can get at least $.25 credit. Some traders may choose to cave .01 to get a fill. 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, If it does not fill, we will look at an alternate entry plan tomorrow.
As always, stay keen on your risk management and trade carefully,