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ProShares Ultra VIX Short-Term Futures Message Board

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  • ralphjlindblom ralphjlindblom Aug 5, 2012 1:16 PM Flag

    writing covered calls to bring cost basis down is this good?

    the issue you have to address is

    "Will the option premium I recieve be less than the drop in the ETF price one month longer"

    If the answer is yes, then you are increasing your losses.

    If the naswer is no, then it is a good policy.

    As I mentioned, it all depends upon how high the spot VIX will be when a decision needs to be made versus your loss at that date.

    Best of luck.

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