optionshane 12:17 pm on Tuesday, July 19, 2016
Tags: ContangoETFs ( 446 )

NUGT

Is a descending triangle pattern forming? The triangle is not too prominent, so I’m not sure if it would qualify as one.

#contangoetfs

Jeff 12:24 pm on Tuesday, July 19, 2016

Regardless of tech analysis, this one will be dropping… the beauty of #ContangoETFs. It you missed my presentation months ago, it is still available for Contributors: Click below to check it out:

https://optionsbistro.wordpress.com/2016/05/23/i-also-dont-see-where/
- optionshane 12:32 pm on Tuesday, July 19, 2016
  
  Thank you Jeff.
- vxxkelly 12:49 pm on Tuesday, July 19, 2016
  
  Hey Shane,
  
  Jeff is right about how contango affects these instruments and you should review his presentation, he explains it pretty well. The thing to remember about $NUGT though is if Gold starts moving higher again, this thing (being a 3X ETF) will scream higher. That upward momentum will totally swamp the contango effect. So please don’t go sell a bunch of calls short thinking this thing has to go lower, you could get crushed. $40 and $50 moves in a few days happen in both directions with $NUGT so trade carefully and keep your exposure small. Wait for your opportunities, there will be another one coming soon, just don’t know which direction the next big move is going to take.
  
  Welcome aboard.
  - Jeff 12:54 pm on Tuesday, July 19, 2016
    
    Yes! What she said. In my presentation I cover how I got my face ripped off by shorting KOLD.
    - optionshane 1:00 pm on Tuesday, July 19, 2016
      
      Jeff and Kelly, Thank you for your feedback. When it comes to options, I am a beginner, so I really appreciate the information and education provided by everyone. I’ll review Jeff’s contango ETF presentation today. Once again, thank you for your help and guidance.