Ramie 6:48 am on Monday, June 13, 2016

NUGT Sep

Sold $NUGT Sep 16 185 call @ 14.00
Adding to highest strike.

Bob King 7:50 am on Monday, June 13, 2016

Interesting trade, but why so far out?
- Ramie 8:37 am on Monday, June 13, 2016
  
  Many of us who trade this ETF (and its opposite, DUST, when it’s spiking), put positions on at very far out of the money strikes over different expirations to spread the risk across many months. With the drag on these instruments, time is your friend (in addition of course to the time factor being on your side since you’re selling options). Right now July and August monthlies have highest strikes of 164 and 160 respectively. The longer months have higher strikes, at 185 starting in September. I am short this highest strike in Sep, Dec and Jan. I think there’s a good chance I’ll be closing all of them early for more than 90% of maximum profit.

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