Option Iceman 9:54 am on Friday, November 25, 2016
Tags: Rollup ( 121 ), ShortCalls ( 979 )

$SVXY #ShortCalls #Rollup – Bought…

$SVXY #ShortCalls #Rollup – Bought to close SVXY Nov 25 2016 83.5 Calls / Sold SVXY Dec 9 2016 87.0 Calls for a 0.68 Credit. Bumped the strike price up 3.5 points

Bill 10:15 am on Friday, November 25, 2016

Mr Iceman… I’m new to OptionsBistro. I’ve seen you do a number of covered calls on $SVXY. For someone without an underlying position, do you suggest writing puts to generate income while waiting for assignment to obtain $SVXY? Then write calls against said position? Or would you outright establish a covered call position with one of your alerts, such as the one above? Thank you in advance for your advice.
- Option Iceman 10:33 am on Friday, November 25, 2016
  
  $SVXY – Selling Puts is a good way to acquire the stock at a discount.
  However, be aware that SVXY is prone to significant drops of 10 % or more whenever market volatility increases to the downside and the VIX spikes.
  So tread carefully.
  - Bill 10:38 am on Friday, November 25, 2016
    
    I see. That’s a good point… thanks for your thoughts. I’ll start out small. Looking forward to your postings.