#LongPutDiagonals #SyntheticShortStock – Adding a position on NUGT similar to the UVXY and VXX positions.

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Synthetic short stock with disaster long calls (16.50 debit)

Sold NUGT JAN 18 2019 42.0 Calls
Bought NUGT JAN 18 2019 42.0 Puts

Long call for possible disasters capping potential losses:

Bought NUGT JAN 18 2019 47.0 Calls

Buying the disaster calls pretty close to help with margin requirements if she spikes with not much effect on long term gains.

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Weekly put sale against synthetic short stock to really boost the profits on this trade:

Sold NUGT SEP 15 2017 40.5 Puts @ .84

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#LongPutDiagonals #SyntheticShortStock – Adding a position on VXX similar to the UVXY position. I’ll let ’em race each other down and see what works the best.

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Synthetic short stock with disaster long calls (16.60 debit)

Sold VXX JAN 18 2019 50.0 Calls
Bought VXX JAN 18 2019 50.0 Puts

Long call for possible disasters capping potential losses:

Bought VXX JAN 18 2019 55.0 Calls

Buying the disaster calls pretty close to help with margin requirements if she spikes…

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Weekly put sale against synthetic short stock to really boost the profits on this trade:

Sold VXX SEP 1 2017 46.0 Puts @ .60

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So now what? Two extremes examined here….

VXX goes to 100 and stays there:

I lose my 16.60 debit and an additional 5 dollars to the upside capped by the disaster calls. But…selling premium at 60 cents a week until Jan 2019 brings in 43.80 points so still a net gain of 22 points for the whole ordeal. Margin requirements for now are 7 points per spread. Not a bad return even in worse case scenario.

VXX does what it usually does:

So VXX eases it’s way down to 10 again. Synthetic stock makes 40 points and weekly premium sales at just a measly 60 cents brings in another 44 points for a gain of 84 points minus the 17 debit (rounding) works out to a 67 point winner.

I expect this one to be easier to manage since the VXX drop isn’t as severe as the amount UVXY can tank. Might actually work out better in the long run due to the weekly premium sales…

#LongPutDiagonals #SyntheticShortStock -Adding here. Could’ve moved up to 35’s but to keep things simple I’m staying with the same strikes for now. Waiting to sell any additional puts.

Synthetic short stock with disaster long calls (17.25 debit)

Sold UVXY JAN 18 2019 30.0 Calls
Bought UVXY JAN 18 2019 30.0 Puts

Long call for possible disasters capping potential losses:

Bought UVXY JAN 18 2019 40.0 Calls

Busy week away from the market again but still adding an experimental position on UVXY. Low risk high reward playing it’s long term downtrend. Reverse Whiz style.

#LongPutDiagonals #SyntheticShortStock – I’ll be adding a similar position on VXX after the split next week. I’ll let ’em race each other down and see what works the best.

BTW…TDA portfolio margin for this trade is only 2600 increasing to 4000 if UVXY doubles overnight…

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Synthetic short stock with disaster long calls (17.75 debit)

Sold UVXY JAN 18 2019 30.0 Calls
Bought UVXY JAN 18 2019 30.0 Puts

Long call for possible disasters capping potential losses:

Bought UVXY JAN 18 2019 40.0 Calls

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Weekly put sale against synthetic short stock to really boost the profits on this trade:

Sold UVXY AUG 25 2017 29.0 Puts @ 1.25

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The plan:

Sell weekly for the next 74 weeks and let the thing decay. Hopefully capture 10 dollars of the move from 30 to 10.
Once I get a little profit under it I’ll reduce the size or possibly eliminate the disaster calls so I’m only treating those as a temporary expense. Once I remove the disaster calls and get some of that debit back I don’t see how this thing can’t make any less than 100 points per spread with very little stress and risk.