VXX - Risky bear credit call spread

Feb 6, 2018

Opened bear credit call spread to hopefully take advantage of the high IV% and time premium. As long as market vol remains fairly stable for the rest of the week, I'll be in good shape. The very high time premium on short dated options means I am only at risk for a short period of time. It is atypical to be able to capture this amount of premium for options about to expire. The down side of trading short dated options is it is very hard to make adjustments if the trade goes against you.

VXX 16.77% $50.23
D: .2382
G: .0528
T: -.2314
IV%: 253% (vs. 112.52%)

W:

Feb 9, 2018

Trade closed manually

Took profits and closed position early. Didn't want to risk waiting till expiration.

Nice gain.