ncroadrunr 8:16 am on Monday, August 29, 2016

$NUGT STO Sept 02 $21…

$NUGT STO Sept 02 $21 call for $1.75 earlier this morning. Trying to add $22 and $22.6 for additional premium. I have a long $36 call that I can sell a number of closer priced calls against. I plan to sell a small percentage today, then add various strikes each day until EOD Thursday when I expect to have a full (covered) position.

1strangealien 8:45 am on Monday, August 29, 2016

Trying to get my head around this trade but it keeps blowing my toboggan off… If you are called away at 21 on Friday you will be forced to buy the stock to cover but as long as the $NUGT price is below 22.75 you make money? Owning the long call gives you the right to sell calls without having to actually own the stock? Thanks, Ben
- ncroadrunr 10:58 am on Monday, August 29, 2016
  
  You have a good grasp of the situation. I am watching the price movement today. If I feel threatened I will buy stock to cover these short calls to maintain a profitable position.
  Owning the long calls allows me to sell short calls with less margin required, or in IRA account.
  - 1strangealien 11:30 am on Monday, August 29, 2016
    
    Awesome thanks for the info! I’m trading an IRA account and have been doing covered calls on NUGT, your method does sound like it would save margin. I guess you’re doing what is called a poor man’s covered call. On a side note, I am in NC also (WNC).