fuzzballl 7:58 am on Wednesday, August 17, 2016

NUGT calls

KInda risky but taking advantage of the drop to close some calls sides of strangles. I’ll re-sell ’em at some point but this is too nice a selloff not to do something…

Bought to Close NUGT AUG 19 2016 155.0 Call @ 3.50 (I’ll re-sell it out in Sep when I roll inverted put side)
Bought to Close NUGT AUG 26 2016 180.0 Call @ 2.75 (sold yesterday for 6.40)

Option Iceman 8:34 am on Wednesday, August 17, 2016

$NUGT – I’m in the process of closing all my NUGT ITM call positions, regardless of the expiration date. I don’t want to sit through the next advance with 5 times the number of short calls.

I’m also liquidating all my DUST longs before the 1:5 reverse split. Don’t want to deal waith odd lot positions after the split.
- fuzzballl 8:44 am on Wednesday, August 17, 2016
  
  I bailed on DUST and took the loss before the last split…hard to believe there’s another one coming so soon. I’m small enough for now to ride out the NUGT split…unless she goes from 30 to 180 again! Anything’s possible with this thing…
  - Ramie 9:04 am on Wednesday, August 17, 2016
    
    Question for Iceman and fuzzballl. I’m looking at adjusting my positions as well (I have a lot of ITM short calls) but I’m struggling with understanding the post-split dynamics. Since this instrument always tied to a fixed 3x of the miners index a % increase or decrease from 150 would be the same as from 30. Wouldn’t any intraday exuberance by traders would be neutralized by the authorized participants and brought in line with the daily reset? This is a new thing for me so trying to figure it out. Is there really increased risk with a split in this instrument (i.e., isn’t this completely different than a split in a stock in terms of momentum carrying the price)?
    - fuzzballl 9:16 am on Wednesday, August 17, 2016
      
      I’m not really sure. I’ll run it through the analyze tab pre and post split and compare margin requirements on any big (percentage wise) moves. Sure seems like everything would be the same as before. Still seems a little more concerning with the bigger number of contracts. Why can’t they leave it alone….lol
      - Ramie 10:05 am on Wednesday, August 17, 2016
        
        Hey if NUGT goes down to 80 by next week will they cancel the split? 🙂
        
        fuzzballl 10:09 am on Wednesday, August 17, 2016
        
        I hope!