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Betting on an end to the summer fireworks

For my late summer trade, I’m going to stick with VIX options, but try a little different tack: put spreads.

I’ve put on what amounts to the equivilent of two VIX September put spreads: twenty contracts on a 27.50 – 25 spread and ten more on a 25-20.

Essentially, this is a simple bet that VIX will fall to 25 before September 21st, with an added bonus if it falls to 20.

Because both buying and selling the 25’s partially cancel each other out, I put it on as three transactions instead of four to save a little on commissions, as shown in my trading log.

If rationality returns to the markets and summer goes out on a calm note on Wall Street, it will go out with a bit of a bang for me!

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