*****UPDATE***** 7/5/2012

THE $IWM ORDER AT .67 LIMIT FILLED. 7/5/2012 5:40 PM

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CHANGED IWM TO .67 CREDIT FROM .68 LETS GET THIS ROLLED NO FILLS 7/5/2012 3:41 PM

WE ARE BUYING TO CLOSE OUR $VXX POSITION @.67 AND THEN EXTERING A REPLACEMENT $IWM SURROGATE POSITION TO RECOUP LOSSES FROM THE FAULTY $VXX PRODUCT.

You are entering a spread.
Leg Action Contracts Option Description Price Duration
Leg 1 Buy to Close 23 VXX Put VXX Jul 21 2012 15.00 Put Debit 0.67 Day Order
Leg 2 Sell to Close 23 VXX Put VXX Jul 21 2012 14.00 Put
Est. Trade Value: $1,541.00
Est. Commission: $15.85
Funds required for this trade: $1,558.12
Quote VXX   14.16   0.26 Bid 14.15 Ask 14.16 Volume 35,696,056
VXX JUL 21 2012 15.00 PUT
VXX JUL 21 2012 14.00 PUT
Bid 1.42 0.76
Ask 1.44 0.77
Last 1.42 0.74
Change -0.29 [-16.96%] -0.24 [-24.49%]
Volume 6,809 5,221
Delta -0.60 -0.44
Open Int 36,187 46,542
Desc VXX Jul 21 2012 15.00 Put VXX Jul 21 2012 14.00 Put
Net Quote
Bid
0.65debit
Mid
0.67debit
Ask (natural)
0.68debit

AND THEN TURNING RIGHT AROUND AND SELLING AN $IWM JUL21 81-80 BEAR CALL CREDIT SPREAD @.68 CREDIT.

THIS WAS A RARE USUALLY EVER EXECUTED ROLL UP AND OUT INTO ANOTHER EQUITY. THIS WAS ONLY EXECUTED SINCE THE $VXX HAS BECOME AN EVER MORE INCREASING FAULTY PRODUCT.

Order Details

You are entering a spread.
Leg Action Contracts Option Description Price Duration
Leg 1 Buy to Open 23 IWM Call IWM Jul 21 2012 81.00 Call Credit 0.68 Day Order
Leg 2 Sell to Open 23 IWM Call IWM Jul 21 2012 80.00 Call
Est. Option Reqs: Creates Credit Spread: $2,300.00
Est. Trade Value: $1,564.00
Est. Commission: $15.85
Net Trade Value: Credit: $1,546.88
Funds required for this trade: $753.12
Quote IWM   81.54   0.01 Bid 81.53 Ask 81.54 Volume 35,458,576
IWM JUL 21 2012 81.00 CALL
IWM JUL 21 2012 80.00 CALL
Bid 1.54 2.23
Ask 1.57 2.24
Last 1.59 2.25
Change -0.02 [-1.24%] -0.09 [-3.85%]
Volume 6,636 4,920
Delta 0.55 0.62
Open Int 72,325 39,370
Desc IWM Jul 21 2012 81.00 Call IWM Jul 21 2012 80.00 Call
Net Quote
Bid (natural)
0.66credit
Mid
0.68credit
Ask
0.70credit

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*****UPDATE***** 7/2/12

THE $VXX HAS CONTINUED TO SLIDE EVER MORE, AND THIS TRADE MAY HAVE TO BE ROLLED. WE ARE STILL CONFIDENT THIS COST OFFSET TRADE WHERE WE USED THE PREMIUMS FROM THIS BULL PUT CREDIT SPREAD TO PAY FOR THE PREVIOUS TRADE, WILL PAN OUT. IT MAY JUST REQUIRE LONGER TO WORK OUT, AND OR TACTICALLY MANEUVER OUT OF.

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*****UPDATE***** 6/24/12 11:47PM

AS STATED EARLIER IN ORIGINAL POST, IF THE TRADE WENT SOUR, AS IT DID, WE HAD A BUILT IN HEDGE. THAT BUILT IN HEDGE SHOULD KICK IN AND REPLACE MOST OF THE LOSSES IN THIS WEEKLY PLAY, AND FOR ME IT WILL REPLACE ALL BUT .05 PER CONTRACT. HEDGES LIKE WHAT WE USED BY SELLING FURTHER OUT UNLIKELY TO GO BAD CREDIT SPREADS, IS A NICE WAY TO PAY FOR DEBIT SPREADS IN UNCERTAIN MARKETS.

THE JUL21 15-14 VXX BULL PUT CREDIT SPREAD USED TO FINANCE THE WEEKLY 18-19 VXX CALL DEBIT SPREAD, IS BELOW THE 52 WEEK LOW IN THE VXX, AND IM STILL VERY COMFORTABLE. IF FOR SOME REASON THE VXX DOES STAY BELOW 14 LEVEL NEAR JUL21 EXPIRY, I WILL SIMPLY ROLL THE SPREAD OUT TO GIVE TIME FOR HIGHER  VXX PRICES.

*****UPDATE***** 6/18/12 12:00PM

THE TRADE EXECUTED EARLIER IN THE MORNING @.05 DEBIT.

SOME OF YOU GOT IN FOR A CREDIT AS WELL.

IF THIS WEEKLY TRADE TURNS SOUR ON US , THE JULY21 BULL PUT CREDIT SPREAD SHOULD OFFSET ALL LOSSES IN THIS WEEKLY IF YOU GOT IN AS A CREDIT,, OR ALL BUT .05 FOR ME.

THIS OFFSET HEDGE FROM THE JULY21 BULL PUT ON THE VXX WILL BE ATTAINED AS LONG AS THE VXX FINISHES AT OR ABOVE 15 BY JUL21. THATS BELOW ITS 52 WEEK LOW OF 15.50 AND CHANGE.

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Like always this is a riskier speculative play, and please allocate properly.

NO MORE THAN 20% OF ACCOUNT TO BE ALLOCATED TO THIS TRADE, AS RESERVE REQUIREMENT TO BE  HELD BY THE BULL PUT CREDIT SPREAD !

IF YOU ARE ENTERING THIS TRADE, THE BULL PUT CREDIT SPREAD JUL21 WILL OFFSET MOST OF THE COST FOR THE JUN22  DEBIT CALL SPREAD.

THE BULL PUT JUL21 CREDIT SPREAD SHOULD BE VERY SAFE, IT IS BELOW THE 52 WEEK LOW FOR THE VXX, AND THEREFORE VERY UNLIKELY THAT WE RUN INTO TROUBLE WITH THAT CREDIT SPREAD.

YOU MUST ENTER THIS TRADE AS A FREE FORM 4 LEG TRADE AND PERFORM AT .05 DEBIT OR LESS, POSSIBLY AT A CREDIT.

Order Details

Leg Action Contracts Option Description Price Duration
Leg 1 Buy to Open 23 VXX Call VXX Jun 22 2012 18.00 Call Debit 0.05 Day Order
Leg 2 Sell to Open 23 VXX Call VXX Jun 22 2012 19.00 Call
Leg 3 Buy to Open 23 VXX Put VXX Jul 21 2012 14.00 Put
Leg 4 Sell to Open 23 VXX Put VXX Jul 21 2012 15.00 Put
Est. Option Reqs: Creates Debit Spread Credit Spread: $2,300.00
Est. Trade Value: $115.00
Est. Commission: $22.75
Estimated Fee: $2.44
Net Trade Value: Debit: $140.19
Funds required for this trade: $2,440.19

Quote VXX   17.87   -0.62 Bid 17.86 Ask 17.87 Volume 10,009,788
VXX JUN 22 2012 18.00 CALL
VXX JUN 22 2012 19.00 CALL
VXX JUL 21 2012 14.00 PUT
VXX JUL 21 2012 15.00 PUT
Bid 0.70 0.39 0.22 0.44
Ask 0.71 0.39 0.22 0.45
Last 0.71 0.40 0.23 0.46
Change -0.59[-45.38%] -0.45[-52.94%] N/A [N/A] N/A [N/A]
Volume 1,585 1,125 145 524
Delta 0.49 0.27 -0.13 -0.20
Open Int 1,173 7,325 7,107 22,500
Desc VXX Jun 22 2012 18.00 Call VXX Jun 22 2012 19.00 Call VXX Jul 21 2012 14.00 Put VXX Jul 21 2012 15.00 Put
Net Quote
Bid
0.08debit
Mid
0.09debit
Ask (natural)
0.10debit

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