We are entering into a longer dated VIX call butterfly. While this doesn’t have much risk. It’s implied probability of success is also very low. We like the potential for some sort of volatility event and being able to take profits on this trade during that time if it happens.
Buy to open: VIX Nov 19th (monthly) 25.00 strike call (ratio of 1)
Sell to open: VIX Nov 19th (monthly) 40.00 strike call (ratio of 2)
Buy to open: VIX Nov 19th (monthly) 55.00 strike call (ratio of 1)
Debit: 0.92
Max risk = 0.92 or $92.00 per spread
Max reward = 14.08 or $1,408.00 per spread