It’s come to my attention that the VXX backspread entry price from the ‘How to Profit from September Volatility Spikes (And Get Paid Waiting For Them)’ article last week was incorrect. We recorded this as a $180 credit; which has now turned into a $250 debit (i.e. a fantastic result: we get paid to ‘buy’ back our credit position). I would love this be true but don’t believe it; I therefore have decided I’ve therefore decided that the original pricing was incorrect and we shouldn’t recognise the ‘profit’ from this spread.
The original trade, tweaked to widen the spread to 12/16, is still valid but obviously less attractive: it would take a much bigger spike in VXX for it to become profitable.
I will be writing an article soon on a different way to trade VXX. But in the meantime my apologies; I will be publishing screenshots of all pricing in future to avoid this happening again.