JETS ETF bearish inclined naked calls - 13 Nov expiry
Once again I'm re-entering a JETS options trade given the low volatility . The industry is still weak and I don't think we will see much upwards movement in the next month especially with the US elections heating up and the focus still on CN, Tech and Healthcare.
For this trade, I sold calls close to a key price resistance point. I did not cover this options trade as I realised my covered options did not protect when volatility increased and the strike got closer.
For now I am leveraging S/R lines to determine strike price selection. I wonder if a potential hedge is a OTM VXX options position at a cheap low price point (When VXX is down, it means the market is up)
Sold 80 Calls @ 0.30, Strike 21
BP block: 15k
Max gain - est $2400
For this trade, I sold calls close to a key price resistance point. I did not cover this options trade as I realised my covered options did not protect when volatility increased and the strike got closer.
For now I am leveraging S/R lines to determine strike price selection. I wonder if a potential hedge is a OTM VXX options position at a cheap low price point (When VXX is down, it means the market is up)
Sold 80 Calls @ 0.30, Strike 21
BP block: 15k
Max gain - est $2400