Though the VIX has gone almost nowhere since we picked it up, we have collected ( cash settlement ) roughly $2.20/Contract in Short premium, all settled in cash through JUN Expiration.
We have a significant amount of additional Short Premium that is potentially 100% collectible after next week’s Expiration. Roughly another $.80/Contract with a VIX Expiration @ $30 or Lower.
That would have then shaved almost $3.00/Contract off of our Long OCT Calls that we purchased for $8.00/Contract… currently priced @ ~ $7.75/Contract.
Our VIX LT Portfolio Hedges are working nicely once again. Our VIX positions last year were one of our most profitable positions.
Anyone who would like to learn to trade the VIX as an excellent portfolio hedge please drop me a note. The VIX trading vehicle is the most dynamic instruments I have found to protect us against the kind of quick, sharp market corrections that we have experienced over the past 12 – 18 Months.
