Trade Adjustment – market hedge

Stock / Symbol: [private_monthly]iPath S&) 500 VIX Short-Term Futures / VXX[/private_monthly]

Entering Option Strategy: diagonal call spread
Price at trade entry: $30.66
Price at this post: $26.55

Current Position:
[private_monthly]
Long 1 VXX Jan12 30 Call
[/private_monthly]

Adjustment: With the market pull back, our [private_monthly]VXX[/private_monthly] position is coming back to life. We're going to sell a JunWk4 option here to lower our cost basis a bit. As always, this is a GTC limit order.

Trade Details:
[private_monthly]

STO -1 VXX JunWk4 31 Call
for a net credit of $0.40 per contract
[/private_monthly]

Max Risk: $579 (adjusted down from $619)
Max Reward: $176 or 30% by Jun 24th
Profit Range: $28 - $36.90
Max Profit at: $31 by Jun 24th
Uncalled Return: 6.46%

For those not currently in the trade, here are the trade Details:
[private_monthly]
BTO 1 VXX Jan12 30 Call
STO -1 VXX JunWk4 31 Call
for a net debit of $4.42 per contract

Requirements:
Cost/Proceeds $442.00
Option Requirement $0.00
Total Requirements $442.00
Estimated Commission $12.95
[/private_monthly]
Max Risk: $442
Max Reward: $312 or 70% by Jun 24th
Profit Range: $25.43 - $40
Max Profit at: $31 by Jun 24th
Uncalled Return: 7.9%

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