Learn the trade here. Make it on tradeMONSTER

Options Trading News

November 27, 2012  Tue 9:27 AM CT

VXX: SEE CHART GET CHAIN FIND STRATEGIES
The VXX volatility exchange-traded note bounced off an all-time low this morning, but one large call spread sees no upside in the near term.

The iPath S&P 500 VIX Short-Term Futures ETN is up 0.74 percent at $29.96 after dipping to $29.32 earlier in the day. It collapsed from above $37 two weeks ago and is down 98 percent from its opening value of $1,600 in February 2009, after two reverse splits.

A trader bought 3,000 December 33 calls for the ask price of $0.88 and sold the same number of December 29 calls for $2.03, according to optionMONSTER's tracking systems. The volume at both strikes was more than open interest, so this was a new credit spread. (See our Education(See our Education section) section)

The trader takes in $1.15, which will be the full profit at expiration if the VXX is below $29. The maximum loss is $2.85 if shares are above $33.
Share this article with your friends


Related Stories

VXX

VIX slips as equities finish mixed

October 17, 2014

Major equities indexes again rebounded off morning lows to finish mixed yesterday, leaving the CBOE Volatility Index down 4 percent.

Premium Services

Free Webinar Series

The 100K Challenge

Education & Strategy

Anatomy of a butterfly

One of the many esoterically named option strategies is known as a "butterfly." But don't be fooled: Like other advanced...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER