Bull Spread — SPY at 121.0

One alternative to a covered call is a bull spread.  You give up some premium in exchange for significantly reducing your downside risk.  I bought SPY 118 May calls at 3.91 and sold 121 May calls at 1.82 for a net debit of 2.09.  SPY was right at 121 at the time, so the the 121 calls were right at the money–which is the  maximum …

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VIX option 2010 April expiration — settlement value 15.94

The settlement value for the VIX index options for April was 15.94 This settlement value is quoted under the symbol VRO (^VRO for Yahoo, $VRO for Schwab). Today’s 21-April opening value for the VIX index was 15.80, so the difference was a relatively small 0.14 (.9%). The settlement value and the real time VIX index quotes are computed different ways, so there is usually a …

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