Quoted from kpg:Buying a call spread has more risk to it as you are now purchasing a premium because of the current implied volatility (IV) - selling for a credit would be a better play as you'd be taking advantage of the IV in your favor.
If bullish:
IV is currently low: Buy a call spread for a debit, assuming IV can rise if it starts to move higher so you capture IV increase as an advantage
IV is currently high: Sell a put spread for a credit, capturing IV premium as an advantage
If bearish you do the opposite.
Here is my risk/analysis on the $50/60 spread you did, assuming 10 contracts for example. I know there is more to it as you added another leg or two on it, but you'll get the idea why it was not a favorable position if you were bullish on VXX
Obviously if the market does in fact rally and move over that 23,700 wall convincingly, we both lose though lol
[quoted image]
How do you generate these analyses?