I hold deep ITM June puts, and when profitable, I sell OTM June puts to form bull put spreads. I have sold the June 14 and 15 VXX puts against my deep ITM VXX puts. I also have shorted DIA shares to allow me to ride out days like today, and give me opportunity to bottom fish should the market crash. The loss on my puts are limited to the cost of purchase, so I will make much more from my shorted Dia shares than I will lose from my VXX puts if we have a capitulation in the market.
I personally do not trade options but I use them as guides. Those expensive premiums on end months suggest to me that the market sees some serious downside to this product or there would not be a premium!
Your bets seem real good to me. But I hate options, having to set a time period for you to be correct. What if it is the day after? I do not like that. I'll sit short.
wes, I got what I wanted. Nice pop in VXX, Dow is tanking today. Now I just have to be patient and gradually build my put position as I gradually buy back my shorted Dia shares. Been waiting a while for the pullback. No better time than the month of May!