fuzzballl 11:13 am on Thursday, March 2, 2017
Tags: PerpetualRollingStrangles ( 116 )

Rolled GLD

#PerpetualRollingStrangles – No time value left in these so rolling and collecting additional premium.

Rolled this week’s 120.5/113 inverted strangles out two weeks for .54 credit.

Position is now March 17 monthly 120.5/113.0 inverted @ 6.05 credit.

vxxkelly 12:53 pm on Thursday, March 2, 2017

What’s your exit strategy on this trade? Soon you will have brought in enough premium to cover the spread. Sooner or later, one of the legs will expire worthless.
- fuzzballl 1:09 pm on Thursday, March 2, 2017
  
  Yes…eventually one side will expire. Doesn’t matter to me which one. At that point I’ll roll the remaining side out a couple months and possibly up or down a strike or two. Then, continue selling the crap out of the weeklies on the other side. I may never be without a GLD position ever again. Just wash, rinse, repeat.
  
  Also doing the same exact thing with TLT. Been in both since October and just collecting premium. 5 GLD and 10 TLT positions use about 10 grand margin. I’ve brought in considerably more than that in premium since then.
  
  This is something the TT guys do. They said one time that they make about 80 percent of their money on about 10 underlyings that they always have positions in. I’ve been doing that too but on a much smaller scale.
  - vxxkelly 2:06 pm on Thursday, March 2, 2017
    
    Are you inverted on TLT as well or just rolling a normal strangle?
    - fuzzballl 9:04 pm on Thursday, March 2, 2017
      
      A little of each. Half the puts are inverted but everything else is normal. I treat these like a weekly dividend while not really caring about the price of the stock. Hard to believe people hold stock for years to get a 30 or 40 cent quarterly dividend. These things pay that every week or two with very little capital tied up.
      - fuzzballl 9:10 pm on Thursday, March 2, 2017
        
        I tried similar plays on NUGT and DUST but soon realized it only works on an underlying that’s not going to zero. I’d like to find some more to use but haven’t found anything yet. TBT has a downward bias to it or I would maybe use it. No premium in SLV so only going with TLT and GLD so far.