The VIX is really low so the best income trade right now is a calendar.
Buy to Open SPX May/Jun 2070 Put Calendar @15.00
If/when SPX moves 40 points in either direction we’ll add another round of calendars.
If SPX continues to squeeze after that, then we will roll the losing calendar to new strikes.
Update – April 27th, 2016
I’m putting limit orders out at 18.00 just in case the vol structure changes quickly after the Fed minutes.
Update – May 3rd, 2016
Ok I’m getting out of this trade here, it has decent profits but all it takes is 30 handles either way to lose it… and we’ve only got 2 weeks to opex so it would be difficult to recoup those gains.
Here’s the trade:
Sell to Close SPX Jun 2070 Put
Buy to Close SPX May 2070 Put