I made a presentation last night to a local Options Trading group about #ContangoETFs, and I included the recent $KOLD trade through the swing from 90 to 220, where many of us held ITM naked calls on the whole ride up. I shared @fuzzballl‘s tactics of selling ITM puts, and of selling the long leg of a way-ITM spread while it was riding high. One member said you need to have “ice in your veins” to handle these types of trades without panic.

It is true that the way many of us trade UVXY and other naked options is not for everyone. I stressed last night and I stress again now, you must know the products you’re trading and you MUST control position size so your account can handle worst case scenarios.

For new members or followers to Bistro, be sure to ask any of the traders here any questions about their positions. This is a good group, always willing to offer advice. I learned much of what I do from many of these people, including @optioniceman who first taught me the tricks to selling naked premium.

(And if you want to see some of the KOLD trading, use search box in the right column and enter the term “KOLD”)