I just bought back the December strike 52 and strike 57 calls that I shorted some days ago. They were shorted at close to 300 each and were worth 80 and 40 now. The possible additional gain is limited and I wanted to close the position to short back some more if the volatility remains. I do not think that this day rally is reliable given that nothing has changed in Europe, and specially because the Italian and Spanish sovereign bonds are still at record highs even after the “good” news from several central banks who said that more Fed dollars are made available cheaply for the banks that need them.
So this seems like a suckers really, but who knows …
I prefer to leave therefore the door open to short more if the volatility comes back, meanwhile I still have a decent VXX short position 50% hedged that at least is finally helped by the “return of contango”.