Roll VXX Puts 153% Yield

I hit my target price on my VXX puts.

music selection:  “Eye To Eye” — Fates Warning

First a little housekeeping. I had an old long call position in Square (SQ) that I acquired for 20.40 a share on 26OCT2018. That was in the days I was expecting a “melt-up” and not “corona-crash”. The position never did particularly well. Today it moved into the green and I dumped it. I got a 23.25 per share. The trade was in force for 586 days and earned 285 dollars or about 14% or 8.70% annualized.

I purchased the 35 strike long puts with 15JAN2021 expiry on 11 MAY 2020 for 10.4917 per share (12 contracts). I sold today for 11.55. The trade was in force for 24 days and earned 1,270 on 12,590 capital at risk or 10%, which is 153% annualized.

I rolled the position forward with the 32 strike puts and 21JAN2022 expiry. I paid 14.65 a share for 10 contracts. My target exit price is 15.75 or a 7.5% nominal gain on capital at risk.

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