Jeff 8:37 am on Thursday, February 18, 2016
Tags: ContangoETFs ( 446 ), VXXGame ( 769 )

DUST and UVXY mgt

BTC $DUST June 23 calls for .30. Sold for 1.75 on Feb 2nd
BTC $UVXY March 18th 105 call for .80. Sold for 4.05 on Feb 9th

#ContangoETFs #VXXGame

2014awc 9:54 am on Thursday, February 18, 2016

Hi all! My first time posting here–no perfectly relevant post to respond to, so I’ll just do it here.

I’m loving following everyone’s trades here. I spoke to you after the meeting last week, Jeff, and want to thank you again (along with all the traders) for this great site…and for your presentations!

Fairly new to the game, trading a small account of 25K, and I started out selling options on the S&P e-mini, with some success. However, I’m diving into the Contango ETF world with the following trade I made today:

STO $KOLD Mar 19 240 call for 6.20

Would greatly appreciate any feedback. Did I do good? Am I doomed? Thanks! Luther
- Jeff 10:06 am on Thursday, February 18, 2016
  
  Sure, you did fine. In general, with a small account I would suggest avoiding higher priced ETFs like KOLD. Might be better to try one or two on NUGT, which is spiking again today. But mainly, with a small account, you need to wait for spiky prices, so in that sense, you did well by selling this while KOLD is currently near its highs from December.
  
  As we’ve seen from KOLD in recent months, it has really flown high with collapsing Nat Gas prices. So you need to be ready for this option to possibly go ITM. If that happens, the best bet is to roll it when it gets ATM. We are happy to advise if that happens. Otherwise, you likely will be in this trade for a couple months, as the illiquid nature of this ETF does not allow for easy exits. Or, you possibly could exit for 4.00 or so if KOLD drops back down to 140 or so. In any case, just be ready for anything.
  
  And let me know if you’d like to become a Contributor. Good to have you on board!
  
  #ContangoETFs
  - Epicurean 10:33 am on Thursday, February 18, 2016
    
    Thanks Jeff! Nice to get a vote of confidence–especially since this KOLD strike jumped a buck mere minutes after execution. On this first one, I will definitely take any even half-decent profits as soon as possible. I would love to become a contributor, but I think I will hold off until I have a few trades under my belt.
- Jeff 7:32 am on Thursday, February 25, 2016
  
  I just wanted to see how you are feeling with this position? I know it can be tough to have these go against you. This is why I think it’s best for beginners or smaller accounts to use lower priced ETFs. Let me know how it’s going!