1strangealien 10:28 am on Monday, September 19, 2016

NUGT

BTC NUGT Sep23’16 25 CALLS @ 0.15, sold for 1.20 on 9/2/16. These were covered, gonna sell calls again after the big announcement hits on Wednesday.

ncroadrunr 11:34 am on Monday, September 19, 2016

Isn’t volatility highest before the FOMC announcement? If we have no increase the market is likely to rise initially, but IV crush will reduce option value. If they raise rates, I expect the market to drop initially. So far gold and the market are moving together. So why not sell call spreads on NUGT? What are your thoughts?
- 1strangealien 6:16 am on Tuesday, September 20, 2016
  
  Hey thanks for your thoughts! I am still in the “figuring this out” mode of selling premium, so if what I am doing doesn’t make sense it’s probably because I don’t entirely KNOW what I am doing. Been selling covered calls and naked puts in NUGT, UVXY, and SVXY for about 6 months. My logic in waiting to sell NUGT calls until after the announcement is that I own shares that I want to hang on to long term and don’t feel comfortable making a blind bet beforehand. On the other hand, I think NUGT goes lower in the coming weeks and months as rates rise… and wonder if I should let the shares be called away then buy them back later. Geez I’m feeling schizophrenic! BTW, IV crush is a recent concept for me, something I am going to study more. Thanks again for your input! Ben

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