The S&P has hit my psychological target of 2000, and the VIX is going back into the 11’s.
I’m assuming here that the market is going to cool off and maybe go quiet as we head into the labor day weekend, which is great for theta.
Here’s the trade:
Buy to open SPX Sep/Oct 2000 call calendar for 11.15
If you can get filled at 11.00, great. I saw 10.75 this morning.
Going to hold for two weeks. If we see a move to our opex breakeven, we will roll the entire trade.
Update: September 2nd, 2014
This turned out to be a fantastic trade.
You can either exit now for a 22% return, or you can set some mental stops (say, around 1990 and 2010) and try and milk the trade over the next week or two.
Sell to Close SPX Sep/Oct 2000 Calendar @13.60
Margin and P/L