As mentioned by Fuzzballl last night, nat gas futures up over 5% and KOLD down almost 20.
Category Archives: Contango ETFs
$DUST $DXY
Dollar seems to be stable to weak which should help support gold prices and hence likely provide some sort of support for the miners. I’m going to be looking for opportunities to sell $DUST calls today.
/NG Nat gas futures
Up 8 cents at the open…if that holds we might see KOLD down 20 in the morning.
Expirations
JBLU 12/18/2015 27C (covered)
JD 12/18/2015 30C (covered)
RLYP 12/18/2015 20C (covered)
RLYP 12/18/2015 20C (covered)
UVXY 12/18/2015 70C
UVXY 12/18/2015 45C
RLYP 12/18/2014 20P
FLDM 12/18/2015 10P
JD 12/18/2015 29P
KOLD 12/18/2015 125P
SVXY 12/18/2015 40P
UVXY 12/18/2015 20P
Options Expiration for 12/18
Expiring:
$AAPL 12/18/2015 100 puts
$AAPL 12/18/2015 105 puts
$AMZN 12/18/2015 615 puts
$APA 12/18/2015 60 calls (covered)
$BOIL 12/18/2015 30 calls (covered)
$CMG 12/18/2015 475 puts
$CRI 12/18/2015 85 puts
$CRI 12/18/2015 87.50 puts
$CYBR 12/18/2015 35 puts
$DUST 12/18/2015 25 calls (covered)
$DUST 12/18/2015 30 calls
$DUST 12/18/2015 35 calls
$GMCR 12/18/2015 60 puts
$KOLD 12/18/2015 185 puts
$KORS 12/18/2015 45 calls (covered)
$NSC 12/18/2015 75 puts
$NUGT 12/18/2015 35 calls
$SVXY 12/18/2015 75 calls (covered)
$SVXY 12/18/2015 70 calls (covered)
$SVXY 12/18/2015 45 puts
$SVXY 12/18/2015 40 puts
$TRIP 12/18/2015 60 puts
$URI 12/18/2015 65 puts
$UVXY 12/18/2015 70 calls
$UVXY 12/18/2015 80 calls
$UVXY 12/18/2015 95 calls
$VRX 12/18/2015 85 puts
$VXX 12/18/2015 44 calls
$WHR 12/18/2015 130 puts
$ZSL 12/18/2015 65 calls
$ZSL 12/18/2015 67.50 calls
$ZSL 12/18/2015 70 calls
$ZSL 12/18/2015 77.50 calls
Assignments (stock being called away):
$GMCR 12/18/2015 55 calls
Assignments (going long stock):
$KMI 12/18/2015 35 puts
Have a great weekend everyone.
Options Expiration 12/18/15
Expiring with 100% profit:
$SPX 2145/2170 call spreads
$AZO 700 puts
$BOIL 25, 30, 65 calls
$DUST 30 call
$FDS 155 puts
$KOLD 170, 185, 195, 200 puts
$UVXY 20 puts
$VLO 72 call
$VLO 67.5 put (covered)
$ZSL 65 and 67.5 calls
No assignments.
Oh, what do we have in store for the coming weeks?
#OptionsExpiration
Today’s expirations, don’t have many left, took profits on most positions earlier in the week. Will be away from the computer for the rest of the day. Have a great weekend everyone.
$BOIL $30 calls
$KOLD $100 puts
$KOLD $110 puts
$UVXY $25 puts
$DUST
STO Jan 15 $25 calls @ $.70
Had to dip my toe.
Feed a KOLD, starve a BOIL
#ContangoETFs #Rolling $KOLD calls while KOLD puts and $BOIL calls expire today.
BTC KOLD Dec 200 calls for 13.20
STO KOLD Jan 255 call for 13.60
STO KOLD Feb 300 call for 16.00
$KOLD #ShortCalls – Sold 1…
$KOLD #ShortCalls – Sold 1 KOLD May 20 2016 320.0 Call @ 23. Adding to my position at the top of the chain.
The reason DUST won’t go up
I’ve been working on a Webinar for #ContangoETFs and with the discussion below on $DUST, wanted to pass along part of what I’m preparing. When you have a levered ETF, they are designed to track the DAILY move of the underlying, multiplied by 2 or 3. So if $GDX is up 1% on the day, $NUGT will be up 3% and $DUST down 3%. But then it resets next day. This creates a compound tracking error that will NOT track the underlying beyond a one-day period. In fact, it will drag both the positive & negative levered ETFs down. Here’s an example:
Let’s say the underlying and long and short 2x ETFs all start at $100. We then watch price action as the underlying swings back and forth 10%:
Day 1: underlying up 10% = 110.00
Long 2x up 20% = 120.00
Short 2x down 20% = 80.00
Day 2: underlying down 10% = 99.00
Long 2x down 20% = 96.00
Short 2x up 20% = 96.00
Day 3: underlying up 10% = 108.90
Long 2x up 20% = 115.20
Short 2x down 20% = 76.80
Day 4: underlying down 10% = 98.01
Long 2x down 20% = 92.16
Short 2x up 20% = 92.16
As you can see, with equal up and down days repeated, the underlying moves down slowly but the 2x ETFs go more quickly. Repeat this way for 6 months and both ETFs would be worth only $2.54.
So GDX has been bearish since its 2011 highs… NUGT has absolutely collapsed as a result of this compounding, but DUST has stayed relatively flat for the same reason.
Interesting, huh? That’s why these “ContangoETFs” all work… even if you don’t have the actual “contango” from futures roll, you get this compounding tracking error dragging them all down.
Follow OptionsBistro and learn more!
DUST
GDX just getting killed…could see a 12 handle soon. Taking the other side of NUGT now. Just adding one to a current position. Will add more if GDX bounces around 13.
Sold 1 DUST JAN 15 2016 22.0 Call @ 1.60
$NUGT
STO Mar $59 Calls @ $0.95
Adding to March Ladder.
Time to come in from the KOLD?
Ginny was asking me and I was considering yesterday… time to buy an ATM put for the reversal? The May 210 put is going for about 49.00. If we get our reversal by then, it will be at least a double. Thoughts on this?
Also, STO $KOLD Jan 150 call for 64.00 as part of a roll from Dec positions. Actually REDUCED my margin because I have so many puts.
And, STO $KOLD Dec 195 call for 3.10… expires tomorrow. Threading the needle for this to end at 200 on the nose tomorrow.
KOLD away
#ContangoETFs Overnight, two Dec calls took away my stock, which was bought at an average price of 203.00
Assigned: Dec 18th 115 call, sold for 19.70 on 11/19.
Assigned: Dec 18th 125 call, sold for 14.60 on 11/19.
Have we reached a bottom? Still have a couple 200 calls from Dec, and 5 more in Jan/Feb. Will look to sell some ITM calls to make up for losses on the assignments above. Should be a rip roaring ride back down, even if NatGas doesn’t rally hard… just needs to stop going down and this ETF will die.
$NUGT $KOLD
Gold is down hard this morning as the dollar is headed back up. Good for short $NUGT Calls. May add to positions today. Nat gas is up again so $KOLD likely to drop back below $200. Should help out your short calls.
$NUGT
Take a look at the intraday 1 minute chart.
$BOIL up 7%
$KOLD down almost as much
$NUGT
Dollar seems to be stabilizing so added back a position.
STO Jan’17 $75 call @ $5.40
KOLD put
#ContangoETFs STO $KOLD Dec 18th 195 puts for 2.00
More KOLD rolls
With no more time value left in these I didn’t want to risk a short assignment (and a subsequent forced buy-in), and doing these rolls brings more loss into 2015.
Rolled $KOLD Jan 118 call to Feb 118 call for 1.60 credit
Rolled $KOLD Jan 115 call to Feb 115 call for 1.45 credit
These calls are too deep in the money to get higher strikes.
$GLD $DXY
Something odd happened about 1:20pm, dollar took a serious drop and about 20 minutes later $GLD and $/GC dove as well. Pretty odd that both the dollar and gold would go down together. Good news for $NUGT, but wierd.
NUGT short call
#ContangoETFs following the herd, BTC $NUGT Jan 2017 60 call for 6.40. Sold for 25.00 on Oct 15th.
NUGT short calls
Reducing a small amount of my exposure as well. Mainly in the positions that are more delta dependent vs theta type positions.
Bought to Close NUGT JAN 20 2017 60.0 Call @ 6.50 (sold for 24.90)
Bought to Close NUGT JAN 20 2017 75.0 Call @ 5.30 (sold for 7.50)
$NUGT #ScalpTrade – Sold NUGT…
$NUGT #ScalpTrade – Sold NUGT Dec 18 2015 35 Calls @ 0.17. These expire Friday and are 9 points OTM
#PrepforFed
Because of the potential for significant moves following the Fed decision affecting the market, volatility and the dollar. This morning I’m going to be closing down roughly 1/2 of my $NUGT positions. They have very nice profits but are fairly illiquid so want lock in some gains and not feel the need to mess with them when things are moving fast.
Looks like the market is going to be strong this morning, so will likely reduce some $UVXY and $SVXY profitable positions. If we get a nasty reaction like last time, I’ll have the opportunity to re-enter positions at better prices.
$KOLD BTC Jan 114 put…
$KOLD BTC Jan 114 put @ .74, 31 days early, STO on Dec 3 @ 3.40, for 75% profit in a traditional IRA account to free up cash for opps in the next couple of days.
KOLD you so…
Spike spikey.. this one may never go down again. IMHO traders think they are smarter than market… global warming means no one will ever need Nat Gas again; easy to see 500 in the cards. See my previous posts going back to the 80’s on how to avoid this. Newbies may have face ripped off!
(For those who were not members of OptionMarketMentor, that was a reference you won’t get, but just know that it is funny)
And now in all seriousness, as Iceman indicates, these things can have violent moves. Look at Monthly chart of $KOLD and see what happened last time we got this high. If you aren’t trading this, don’t start now! I am rolling out of my December short calls in various ways, including rolls to new calls, reverse rolling to puts, buying stock, and selling new puts. I have also closed some puts for .10 & .15, which releases about 5K in margin per option!
BTO 100 shares for 217.55 (adding to some bought at 187)
BTC Dec 18th 149 puts for .15. Sold for 1.80 on 12/10
BTC Dec 18th 155 puts for .15. Sold for 2.60 on 12/8
BTC Dec 18th 135 put for .10. Sold for 2.90 on 12/3
BTC Dec 18th 118 call for 99.60. Sold for 20.00 on 11/11
STO Dec 18th 200 puts for 2.80
STO Jan 15th 210 put for 21.90
$KOLD Many thanks for the…
$KOLD Many thanks for the nat gas discussion below started by Ramie!
$KOLD roll
I just eliminated my last December call position by rolling it up and out to January for 8.64 credit.
Bought $KOLD Dec 18 200 call @ 18.10
Sold $KOLD Jan 15 2016 210 call @ 26.74
Does anyone’s broker have shares…
Does anyone’s broker have shares of DGAZ to short? Much more liquid than KOLD. Would rather short it than buy UGAZ because of the wicked decay.
KOLD comfort
#ContangoETFs STO $KOLD Dec 18th 185 puts for 3.05
KOLD inverted strangle update
Rolled Dec 175 puts up to Dec 200 for a credit. Also short the 120 calls in Jan for an inverted strangle. Assuming the 200 puts expire I’ll be left with short DITM Jan 120 calls with the whole position bringing in a total credit of 52 dollars giving me a breakeven on the Jan 120 calls of 172.
At that point I’ll have to decide where to sell the new puts…basically the more bullish I am on KOLD (bearish on nat gas) the higher the strike I’ll sell the puts at with hopefully being no further inverted than the toal premium received. Ideally early next week nat gas rallies and KOLD tanks and I never even have to sell them…LOL
$DUST $NUGT
These guy’s are really moving today. Go baby go.
DUST calls
$ZSL hitting a four-month high
$ZSL hitting a four-month high
$KOLD
STO Jan’16 $130 puts @ $1.25
STO Feb’16 $100 puts @ $1.25
$KOLD
STO May $90 puts @ $2.10
KOLD cocked
#ContangoETFs New $KOLD call strikes up to 230. Probably best to buy them or ignore them!
#OptionsExpiration – volatile week. GMCR…
#OptionsExpiration – volatile week. GMCR ruined what would have been a good month to date.
DUST (Weekly) Dec 11 2015 15 Puts
DUST (Weekly) Dec 11 2015 19 Calls
KMI (Weekly) Dec 11 2015 15.5 Puts
NFLX (Weekly) Dec 11 2015 115 Puts
NUGT (Weekly) Dec 11 2015 36.5 Calls
SVXY (Weekly) Dec 11 2015 65 Calls
SVXY (Weekly) Dec 11 2015 70 Calls
UVXY (Weekly) Dec 11 2015 20 Puts
UVXY (Weekly) Dec 11 2015 21 Puts
UVXY (Weekly) Dec 11 2015 21.5 Puts
UVXY (Weekly) Dec 11 2015 41 Calls
UVXY (Weekly) Dec 11 2015 42 Calls
UVXY (Weekly) Dec 11 2015 43 Calls
UVXY (Weekly) Dec 11 2015 44 Calls
UVXY (Weekly) Dec 11 2015 55 Calls
UVXY (Weekly) Dec 11 2015 60 Calls
UVXY (Weekly) Dec 11 2015 65 Calls
UVXY (Weekly) Dec 11 2015 70 Calls
WYNN (Weekly) Dec 11 2015 61.5 Puts
WYNN (Weekly) Dec 11 2015 57 Puts
— Assignments —
GMCR (Weekly) Dec 11 2015 60 Calls – had to buy in the stock to cover the calls
GMCR (Weekly) Dec 11 2015 61 Calls – ”
SVXY (Weekly) Dec 11 2015 47 Puts
SVXY (Weekly) Dec 11 2015 48 Puts
SVXY (Weekly) Dec 11 2015 49 Puts
UVXY (Weekly) Dec 11 2015 38 Calls (Covered)
Options Expiration for Dec 11
Expiring:
$NUGT 12/11/2015 36.50 calls
$UVXY 12/11/2015 41.00 calls
$UVXY 12/11/2015 55.00 calls
No assignments today.
Options Expiration 12/11/15
These expired worthless, full credit:
$DUST 30 call
$UVXY 23 puts
$VLO 74 call
$SPX 2085/2110 call spreads
$SPX 2130/2155 call spreads
Assignment:
$VLO 69 put, partial short stock position covered
Have a great weekend everyone! I’ll be checking in on the blog all weekend.
KOLD cocked
#Contango ETFs Bought 100 shares of $KOLD for 187.90. Need to cover my short calls for next week, so buying a bit now in case price continues higher next week.
KOLD turkey
#ContangoETFs Added another margin-free put, STO $KOLD Dec 18th 170 put for 2.50
KOLD sore
#ContangoETFs Adding more puts to offset the pain-in-my-side short calls:
STO $KOLD Dec 18th 149 puts for 1.90
STO $KOLD Feb 19th 110 puts for 3.15
$DUST #ShortPuts – going back…
$DUST #ShortPuts – going back to the well again on DUST. Still trying to force NUGT higher …
Sold DUST (Weekly) Dec 11 2015 15 Puts @ 0.50. These expire Friday
$WYNN leaps higher this morning.
$KOLD may have finally run out of gas 🙂
$NUGT
Big move up this morning. Dollar made a big drop overnight so rippling thru to gold. $DXY and $UUP now seem to be bouncing higher so if that continues it should temper the $NUGT move
KOLD calls hurting
#ContangoETFs The continuing decline of Nat Gas has driven $KOLD up astronomically, straining my account and margin. I currently have way more puts than calls, but the calls are all dramatically underwater. Fortunately, it is not difficult to #ReverseRoll. On November expiration, I had 5 short calls way ITM that I closed out. Within one week I had sold enough puts to make up for the losses, and all of those puts are now approaching zero.
December expiration is a bit heavier, but today I started closing out some early and sold some more puts.
BTC $KOLD Dec 118 call for 62.00. Sold for 20.00 on 11/11 (part of a roll)
BTC $KOLD Dec 120 call for 56.40. Sold for 19.00 on 11/19
BTC $KOLD Dec 100 puts for .20. Sold for 3.00 on 11/19
STO $KOLD Dec 155 puts for 2.85. Starting the rolls for the above positions.
$NUGT
STO Jan’18 $45 call @ $13.00
DUST – just sold 1/2…
DUST – just sold 1/2 of the remaining stock put to me Friday at 16.77(Friday’s high)
$DUST $NUGT
Wish I would have gotten in on Friday with you guy’s, but I’m sure glad I did pile in this morning. Always a little trepidation when “chasing” but really believed they would do what they are doing.
TZA calls
#ContangoETFs STO $TZA Jan 15th 50 calls for 1.40. Every time this pops I sell some 50 calls in the next month, and every time I can cover for 80% of max profit a couple weeks later.
DUST – dumped most of…
DUST – dumped most of the long stock that I was put on Friday at 15.5 & 16.0 just now at 16.30
DUST calls
#ShortCalls – Bought to close DUST DEC 18 2015 22.0 Calls @ .25 (sold for 1.65)
Still short 22 puts so looking to lay the calls out there again on any follow through. This was part of a short rolled straddle worth 5.45 total.
$NUGT $DUST
I was away from the market almost all day on Friday, so had to chase a bit this morning to add some positions. You guy’s got better prices on Friday.
STO $NUGT June $70 calls @ $3.90
STO $NUGT Jan 15th $45 calls @ $1.25
STO $NUGT Jan 15th $50 calls @ $.95
STO $NUGT Mar $65 calls @ $1.75
STO $NUGT Mar $75 calls @ $1.30
STO $NUGT Jan’17 $75 call @ $6.90
First time trading $DUST so just dipping a toe
STO $DUST Jan 15th $10 puts @ $.45 (has never traded down to $10)
STO $DUST Dec 18th $13 puts @ $.45
KOLDer outside
#ContangoETFs New highs again… STO $KOLD Jan 15th 215 call for 7.10. Highest strike.
$KOLD rolls
Rolled my ITM Dec positions out to January for credits and in the process made some tax moves, keeping the losses in 2015. Utilizing the TastyTrade strategy and rolling to the same strike, pulling in more credit than rolling up.
Rolled $KOLD Dec 18 115 call out to Jan 115 call for 2.08 credit
Rolled $KOLD Dec 18 118 call out to Jan 118 call for 2.41 credit
Rolled $KOLD Dec 18 136 call out to Jan 136 call for 5.12 credit
$DUST #CoveredCalls – Sold DUST(Weekly)…
$DUST #CoveredCalls – Sold DUST(Weekly) Dec 11 2015 19.0 Calls @ 0.15. These expire Friday.
#OptionsExpiration #Weeklys #Dec04 – Pretty…
#OptionsExpiration #Weeklys #Dec04 – Pretty good week for selling premium. The pain in DUST is more than offset by my gain in NUGT. I don’t expect DUST will stay down too long.
I have a full plate of positions for next Friday already, thanks to the volatility yesterday.
— Expirations —
GMCR (Weekly) Dec 4 2015 58 Calls
NUGT (Weekly) Dec 4 2015 35 Calls (Covered)
SVXY (Weekly) Dec 4 2015 55 Puts
SVXY (Weekly) Dec 4 2015 65 Calls (Covered)
SVXY (Weekly) Dec 4 2015 70 Calls (Covered)
UVXY (Weekly) Dec 4 2015 22.5 Puts
UVXY (Weekly) Dec 4 2015 23 Puts
UVXY (Weekly) Dec 4 2015 38 Calls (Covered)
UVXY (Weekly) Dec 4 2015 41 Calls (Covered)
UVXY (Weekly) Dec 4 2015 60 Calls
WYNN (Weekly) Dec 4 2015 55 Puts (Covered)
— Assignments —
DUST (Weekly) Dec 4 2015 15.5 Puts
DUST (Weekly) Dec 4 2015 16 Puts
Silver and Gold
#contangoetfs
STO $NUGT June 72 call for 4.10 (adding to my position, thanks @Ramie)
STO $ZSL May 40 puts for 1.30.
STO $ZSL Feb 45.5 puts for .90
Silver spiking today as well as gold, dropping ZSL to its lowest level since early November. These are now my only puts against a sizable short call position.
NUGT: Adding to June position
Adding at the highest strike in June. Premium 1.00 higher than on Tuesday.
Sold $NUGT Jun 17 2016 72 call at 4.00.
NUGT
#ShortCalls – Added one today so far…
Sold NUGT MAR 18 2016 65.0 Call @ 2.10
$NUGT #ShortCalls – Sold NUGT…
$NUGT #ShortCalls – Sold NUGT Dec 11 2015 36.5 Calls @ 0.50. Just one of many new position I took in NUGT today.
These expire next Friday
$GLD $NUGT
Interesting that the dollar is rebounding some, Euro is pulling back a bit but Gold is making a much bigger move today than it did yesterday. Has $NUGT making a move.
$NUGT #ShortCalls – Sold NUGT…
$NUGT #ShortCalls – Sold NUGT Jun 17 2016 72.0 Calls @ 3.30. Top of the chain
$KOLD #ShortCalls – Sold 1…
$KOLD #ShortCalls – Sold 1 KOLD May 20 2016 215.0 Call @ 20.40 on the opening this morning
NUGT: Short calls in March
NUGT: Short calls in March
$UUP $NUGT
Dollar made a big move down on the ECB actions/comments. But, GLD barely wiggled. Starting to place a few more $NUGT short call orders. Spreads are kind of wide so we’ll see if I actually get any orders filled.
$KOLD
STO Jan’16 $114 put @ $3.50
Single put at the lowest available strike.
TZA call spread
#ContangoETFs – Adding to some winners…was almost completely out of this ticker.
Sold TZA JAN 15 2016 45/55 Bear call spreads @ .92
KOLD puts
#ContangoETFs I’m a bit stretched margin-wise to sell more calls, but puts still going for great rates, and I get margin credit for selling them.
STO $KOLD Dec 18th 128 puts for 1.90, adding to my position.
Will it ever get KOLD again?
Sold Dec 18 200 (highest strike) for 2.00, with $KOLD at 162.
$NUGT $UVXY $KOLD $SVXY
Made several trades this morning.
$NUGT STO Jan’18 $38 call @ $13.40
$UVXY BTC Dec 11 $22 puts for very small loss. Making room next week to roll my Dec 4 $24 puts out and down to next week if I need to.
$KOLD BTC Dec 18 $185 call @ $4.30, very small loss. At the rate it is moving there is plenty of time for my call to get into trouble, so just stepping aside watching my short puts make money. May re-enter 1 week before expiration.
$SVXY BTC Dec 18 $61 put. Had nice profit and pretty close to ATM so just taking it off the table. Nearly all of my remaining puts are $50 and below.
$NUGT $DUST – sharp reversal…
$NUGT $DUST – sharp reversal from yesterday’s move. Short NUGT calls and DUST Puts looking good
Options Bistro 