When writing weekly CALL spreads on VXX; what percent out-of-the-money do trader like to choose? And how do traders adjust their trades when and if VXX were to surge towards the short CALL strike to mitigate losses? I have been writing CALLs for a couple of months on VXX at 10-20% out-of-the- money strikes but I feel might get a bit more aggressive but I remain a little gun shy.
Might want to consider doing the monthly at 10-20% instead of weekly. Or do weekly at the money. In fact I could see doing weekly 5-10% in the money. This thing is going down big time could see $5 or $6 in 12 months.