Ramie 11:49 am on Thursday, October 6, 2016

Taking off some more NUGT calls

Continuing to take positions off near max profit to reduce exposure.
Bought to close $NUGT Nov 18 21 calls @ .40. Sold for 3.95 on 8/30.
Bought to close $NUGT Dec 13.60 calls @ 2.00. Sold for 20.60 as a rollout on 8/3.

ncroadrunr 1:30 pm on Thursday, October 6, 2016

Nice job. I need to follow you until I shake the “wrong way Mulligan” trading I get in to at turning points.
- Ramie 3:09 pm on Thursday, October 6, 2016
  
  Thanks but I’m not patting myself on the back right now. I went in too heavy (accumulating too big a position size) and had to do several in-the-money rollouts along with selling puts to bring in premium. It could end up all working out (and I’m in much better shape with margin and risk than I was a few weeks ago) but that doesn’t mean I was right to do it this way. I’m actually pretty lucky NUGT topped out where it did since the margin requirement was exploding and I was still able to maneuver. My lesson of course is to watch position size–I’m more relieved right now to be getting out of these positions profitably than I am happy about my trading. All that said, I do think that going in the money on short calls can be okay because they usually can be rolled, and NUGT has a lot of drag to it. Just have to keep those positions manageable so a big move doesn’t shake you out.