Sorry about another update…LOL Skip to the next post if you’re sick of these. 🙂 🙂

OK…here we go. Have to admit I wasn’t expecting a 40 percent drop in a week (although I knew it was possible) but here we are. The price fell through my entire inverted and regular strangles obviously putting the puts deep underwater. Due to the upcoming “Uncle Janet piehole situation” I was reluctant to roll down any calls to help with the long deltas so the calls are basically all gone now. I’ll wait for tomorrow and hope for a bounce to sell calls but in the mean time I bought some GDX puts in case the “J-Hole is a go”…LOL

Also today to help a little with the deltas and to simplify things I rolled all the puts out and slightly down so they are all in the same month. (Sep monthly for now). Paid a little debit but that can come out of this week’s call profits.

So currently: (all split adjusted)

Sep 28 puts @ 2.20
Sep 31 puts @ 3.70
Sep 32 puts @ 6.65

Obviously DITM but breakeven is a little lower. My goal now is to keep the premium received so far while getting these puts to a more reasonable level. So what to do? I’ll keep selling the weekly premium but what should I do with it?

1. Pocket it and keep rolling the puts each month? That’s risky the way this thing can tank.

2. Use the premium to roll the puts down each week? Seems reasonable especially if I take them out to October.

3. Use the premium to buy back some puts to reduce size? A possibility for sure.

4. Use one week’s worth of premium and buy some put spreads for protection? Maybe…

5. Close it all for a manageable loss? That would be a lot of work down the drain…LOL

Whaddya guys think? Lesson learned so far is to be careful with the depth of your inversion…although NUGT could just as easily have been at 200 yesterday instead of 100 so it’s toss up there. Sure has been an interesting experiment…so far!