Close the Nov VIX Call for a Loss

October 28, 2015 - 8:22 am

We bought Nov $19 Calls on VIX for $1.75 as a way to profit if the market pulled back over the past 3 weeks, and we've seen a consistent rally since that time to a point where the S&P has moved handily over its 50 DMA and 18 points over its 200 DMA. It's unclear if this rally will last or fade as there is some resistance at 2100, however we've lost money on this trade and we're getting out before it gets worse.

We sold these calls for $0.91 today for a .84 cent, or 48% loss. Once again, we got burned by hedging as we've often done in the past and this market seems to want to continue to move higher defying the pressure of future interest rate