Closed Short Puts Position in in iPath S&P 500 VIX Short-Term Futures ETN

Today, the Covered Calls Advisor closed out the 100% cash-secured short Puts position in in iPath S&P 500 VIX Short-Term Futures ETN (ticker symbol VXX).  Although this trade was profitable, the Covered Calls Advisor is very unlikely to establish another position in VXX in the future.  I expected a better return-on-investment than was achieved given the significant increase in volatility in the S&P 500 Volatility Index (VIX) from 11.33 when the position was established to 12.94 today when the position was closed.  But because of these VXX futures are so short-term in nature, their inherent value decline makes it exceedingly difficult to profit from them.

Fortunately in this position, the Covered Calls Advisor achieved a +0.6% absolute return-on-investment (equivalent to a +13.9% annualized return-on-investment) for the 15 days the  position was held.  Details of the transactions and results are provided below.


iPath S&P 500 VIX Short-Term Futures ETN (VXX) -- Position Closed

The transactions were as follows:
03/08/2017 Sold 10 VXX March 24, 2017 $17.00 100% cash-secured Put options @ $.69
Note: the price of VXX was $17.02 when these Puts were sold
03/23/2017 Bought-to-Close 10 VXX Puts @ $.57
Note: the price of VXX was $16.63 when this transaction occurred

The performance result (including commissions) for this iPath S&P 500 VIX Short-Term Futures ETN position is as follows:
VXX Cost Basis: $17,000.00
= $17.00*1,000 shares

Net Profit:
(a) Options Income: +$97.10
= ($.69 - $.57) *1,000 shares - 2* $11.45 commissions
(b) Dividend Income: +$0.00

(c) Capital Appreciation: +$0.00
=+($17.00-$17.00)*1,000 shares

Total Net Profit: +$97.10

= (+$97.10 options income +$0.00 dividend income +$0.00 capital appreciation)

Absolute Return: +0.6%

= +$97.10/$17,000.00

Annualized Return: +13.9%

= (+$97.10/$17,000.00)*(365/15 days)