What is your year to date performance in your investments Mandalay? I hope it was at least VERY good to take on the kind of risk you are taking a rise in VXX to 500 would cost you a half million bucks and I don't think you have it.
I'll be honest with you. I was a stubborn long and lost a good amount of money in the first half of this year on TVIX and UVXY, but I'm doing much better (now that I know which side of the trade is guaranteed winner), so I'm down YTD, but I made almost 9 grand today. Bought back my 1800 shares today and added 10 more March 40 put contracts on VXX. And if VXX does happen to skyrocket, I am long puts, so I won't be subject to margin calls...
You must be long... Been there myself, so I know it hurts, especially when you let your pipe dreams get the better of you and predict VXX and UVXY doubling and tripling like in August 2011, but then wake up to see your pipe dreams crushed.
Short 1800 shares of VXX at 35.20
Long 30 contracts of March 40 puts on VXX
Long 18 contracts of Jan 35 calls on VXX (my protection)
Net profit up today is $5K. I admit, I sold weekly 31 calls on VXX a couple of weeks ago that ended up in the money and I lost a big chunk, but now I'm even and positioned for more gain as VXX declines...