#ContangoETFs BTC KOLD May 85 puts for .40. Sold for 2.10 on 1/29.
#VXXGame STO UVXY June 80 calls for 1.30 (#Rolling from 28 puts closed Friday)
Tag Archives: ContangoETFs
NUGT & UVXY rolls
#ContangoETFs #VXXGame #Rolling
BTC NUGT March 18th 63 call for 5.65. Sold for 112.5 on Tuesday.
STO NUGT April 15th 80 call for 6.10
STO $UVXY June 15 puts for 1.25. This is just part of rolling I’m doing for March 18th 28 puts I closed earlier.
NUGT & UVXY closes
#ContangoETFs BTC $NUGT March 18th 70 call for .20. Sold for 1.00. Avoiding any late day surge. Still have a 63 call to deal with, I will roll that.
#VXXGame BTC $UVXY March 18th 28 put for 4.60. Sold for 1.19 on Feb 8th. Scaling out of these today; may get out of others of less as it is rising; will replace with rolls today or next week.
$NUGT
Went negative on the day. Yeah!
Snickers Bar
#ContangoETFs #Rolling
BTC NUGT March 19th 63 call for 11.00. Sold for 1.12 on Monday. Harrumph.
STO NUGT April 15th 72 call for 12.20.
BTC NUGT March 19th 70 call for 5.00. Sold yesterday for 1.00
STO NUGT April 15th 90 call for 6.10
Geez, were we early on…
Geez, were we early on NUGT calls or what?
NUGT puts this morning, now calls…
#ContangoETFs STO $NUGT March 18th 63 calls for 1.15
BIB….not VRX
Guessing BIB is down today due to catching shrapnel from the VRX implosion. Is it temporary?
Bought BIB covered stock at 37.70…short this Friday 39 calls. Could make 1.30 quickly or own it at a decent price.
EDIT…thought about selling VRX puts but who knows where this thing goes. Iceman whaddya think? I know we did pretty good on their initial implosion but this seems different….
NUGT opener
#ContangoETFs STO NUGT March 18th 47 put for 1.20
More NUGT
#ContangoETFs STO NUGT March 18th 48 put for 1.25
STO March 24th 40 put for .80
STO June 17th 20 put for 1.00
morning NUGT
#ContangoETFs STO NUGT March 18th 48 puts for .65
$KOLD #ShortPuts – Sold KOLD…
$KOLD #ShortPuts – Sold KOLD Mar 18 2016 180.0 Puts @ 1.60. Just a teeny bit better premium than yesterday 🙂
edit: added more @ 1.81. Now are my short calls are paired with short puts, so done for now.
a NUGT morning’ to ya
#contangoetfs
STO NUGT March 11th 70 call for .75
STO NUGT March 18th 80 calls for 1.50
STO NUGT April 8th 105 call for 2.00
NUGT drop
#ContangoETFs STO NUGT Mar 24th 37 puts for 1.00
BTC NUGT March 18th 15 put for .05. Sold for 1.40 on Oct 16th
BTC NUGT March 11th 37 puts for .05. Sold for 1.125 avg price in Feb
NUGT puts
#ContangoETFs STO NUGT March 18th 45 put for 1.40
STO NUGT April 15th 30 put for .85
NUGT weeklys
#ContangoETFs STO $NUGT March 11th 80 calls for 1.25
NUGT puts
#ContangoETFs Rolled up some puts…
BTC NUGT March 11th 35 puts for .05. Sold for 1.075 in Feb.
STO NUGT March 11th 48 puts for .70
STO NUGT March 18th 40 puts for .65
BOIL closes
#ContangoETFs Funny how these calls only close on UP days with my GTC orders. I imagine it is because they are the only days when any bids are available.
BTC $BOIL June 27 calls for .05. Sold for 1.50 on Dec 28th.
TZA closed out
#ContangoETFs Since these positions are all doing pretty well, I’m closing down my entire TZA position to clear margin. All of these are at a profit (except for puts), but the expensive ones were sold as rolls, so overall positions are less profitable. I will look to sell calls again on this in subsequent spikes.
BTC TZA March 18th 80 calls for .18. Sold for 7.15
BTC TZA March 18th 50 calls for 4.30. Sold for 20.60
BTC TZA April 15th 85 calls for .60. Sold for 5.05
BTC TZA July 85 calls for 3.20. Sold for 5.90
BTC TZA Jan ’17 80 call for 7.60. Sold for 14.00
BTC TZA March 18th 50 puts for 1.24. Sold for 1.00.
ZSL closed out
#ContangoETFs Closing out my last remaining positions in $ZSL to clear out margin. First time I’ve had no position in this name in years, but since the split it has been pretty boring.
BTC ZSL May 40 puts for 1.00. Sold for 1.30 on Dec 4th
BTC ZSL May 80 call for .60. Sold for 3.00 on Dec 30th
BTC ZSL May 82.5 calls for .55. Sold for 2.30 (effective price) on Nov 4th.
NUGT puts
#ContangoETFs Scaling into several short-term puts which are all margin free (offsetting calls)
STO NUGT March 4th 47 puts for .75
STO NUGT March 11th 40 puts for .75
My Weekly NUGT trade
#ContangoETFs Been selling 15-25 points higher for same week expirations each week…
STO NUGT March 4th 70 calls for 1.00
NUGT puts
#ContangoETFs STO NUGT March 11th 40 put for 1.70 (adding)
STO NUGT April 1st 30 put for 1.30
UVXY and NUGT mgt
Earlier today, made some adjustments for margin purposes…
BTC UVXY Feb 26th 60 call for .03. Sold for .30 yesterday
BTC UVXY Feb 26th 58 calls for .04. Sold for .35 yesterday
BTC UVXY Mar 11th 80 call for .34. Sold for 2.17 on Feb 2nd
BTC UVXY June 110 call for 4.50. Sold for 9.50 on Jan 25th
STO UVXY April 1st 29 puts for 1.50
STO NUGT March 11th 40 put for 1.55
STO NUGT March 11th 37 put for 1.05
NUGT tornado trades
#ContangoETFs STO NUGT March 11th 37 put for 1.20
STO NUGT March 11th 35 puts for 1.05
STO NUGT March 18th 30 puts for .80
NUGT call spreads…question
Currently short June 50/70 bear call spreads. Sitting here looking at the long 70’s and seeing a bunch of 10 bagger gains….(of course the 50’s are bigger losers). Running the analyze tab on TOS the account could easily handle NUGT at 100 with all of the short calls naked so with that in mind…
Should I:
1. Do nothing
2. Book half the long 70’s
3. Book all the long 70’s
4. Book the longs and roll the short 50’s out and up
5. Some combo of all of the above
What would you guys (gals) do?
EDIT…could roll the short 50’s to Sep 60 or Jan 80 for even.
#Gold $NUGT
With Gold looking like it is on the next leg of a break out. I’m going to be reducing short calls today and adding more short puts. $GDX and $NUGT very strong right now. Reducing overall delta and just getting out of the way for the time being and will look for opportunities to re-enter trades at a later time.
NUGT puts
#ContangoETFs Threw some out there as it has come down off its highs:
STO NUGT March 11th 35 puts for 1.10
STO NUGT March 18th 30 puts for .85
Each put I sell gives me a margin credit since I’m short so many calls. I will add more if premium rises. Need to be ready for a quick drop in NUGT but these are easy to roll or reverse-roll to calls once the inevitable down move begins.
NUGT near-term
#ContangoETFs While volatility has relaxed, NUGT has replaced UVXY for same-week, far OTM call sales. Added some more:
STO NUGT Feb 26th 70 call for .50 (added)
STO NUGT Feb 26th 68 calls for .65
I’ll add another to each if they go up by a nickel.
NUGT rolls
#ContangoETFs Slowly adding safer positions to make up for the 30-handle calls that ripped my face off.
STO $NUGT March 11th 75 calls for 1.80
DUST and UVXY mgt
BTC $DUST June 23 calls for .30. Sold for 1.75 on Feb 2nd
BTC $UVXY March 18th 105 call for .80. Sold for 4.05 on Feb 9th
NUGT calls
#ContangoETFs Followed @iceman and @fuzzballl at highest available strikes:
STO NUGT March 4th 75 calls for 1.00
STO NUGT March 18th 80 calls for 1.85
NUGT opener
NUGT opener
#ContangoETFs STO NUGT Sep 80 call for 11.20 (highest strike). First of several rolls I owe myself from closed underwater positions.
$NUGT #ShortPuts – Sold NUGT…
$NUGT #ShortPuts – Sold NUGT Feb 19 2016 33.0 Puts @ 0.30
Also got a partial fill on some NUGT Feb 19 2016 30.0 Puts @ 0.15
Both expire Friday
NUGT & DUST
#ContangoETFs
BTC DUST June 25 call for .40. Sold for 2.15 on Jan 11th
BTC NUGT Feb 26th 37 call for 9.00. Sold for 1.35. I have been scaling down my underwater positions without rolling yet. If we get another surge higher I will look to sell longer dated, higher positions.
NUGT and KOLD
I’ve come under some margin pressure for over-sized call positions in both these names. I have been scaling back, closing my only remaining ITM KOLD call and a few NUGT ITM calls. I am refraining from new positions now. As I don’t want to limit my margin power in the future, I will hold off on selling multiple calls on these ETF’s until they are in a very strong uptrend. The spikes seem to happen often enough, but during the boring parts in between I sell too many that then go underwater. I am not rolling now as that wouldn’t help the margin issue, so I will look to profit from these #ContangoETFs in the coming weeks. I still have multiple OTM calls that should be safe in both KOLD and NUGT.
Chicken NUGT
#ContangoETFs Got caught in some ITM $NUGT calls so I’ve been rolling a bit out at a time. Today, BTC $NUGT Feb 19th 35 call for 5.50. Will sell a rolled call on the next pop up. Leaving others for now.
Also, followed @Iceman on some of these:
STO NUGT Feb 12th 30 puts for .30
STO NUGT Feb 12th 30.5 puts for .40
STO NUGT Feb 19th 26 put for .90
NUGT roll
#ContangoETFs #Rolling Got stuck with a few NUGT calls in the 30’s expiring in Feb. All my other calls are 50 and above. Starting with some rolls,
BTC NUGT Feb 26th 35.5 call for 15.00
STO NUGT March 18th 37 call for 15.30
If we get some pullback I will roll some more, and may add some puts below 25, but that’s usually dangerous.
Added NUGT
#ContangoETFs Sold to Open $NUGT March 18th 50 call for 5.25
KOLD closes
#ContangoETFs Performed some margin management this morning by closing some calls. I will replace the 97 with new ITM calls in the future, but the rest were closed with profit.
BTC KOLD Feb 97 call for 79.00. Sold for 16.10 on Sept 29th
BTC KOLD Feb 250/275 call spreads for .65. Sold for 1.00 on 12/29
BTC KOLD Feb 270 calls for .50. Sold for 16.50 on 12/22
BTC KOLD Feb 240 calls for 1.50. Sold for 14.00 on 12/24
and these BOIL calls closed on GTC orders: (interesting that they finally close on an UP day for BOIL)
BTC BOIL March 35 call for .05. Sold for 2.30 on Nov 6th
BTC BOIL March 30 call for .05. Sold for 3.50 on Nov 5th
NUGT again
#ContangoETFs STO $NUGT Jan 2017 75 call for 7.70. GTC order in to sell the next one for 8.70.
NUGT call
#ContangoETFs STO NUGT June 72 call for 3.70. Highest strike. GTC order placed to sell the next one for 4.70.
$NUGT #ShortCalls – Sold 1…
$NUGT #ShortCalls – Sold 1 NUGT Mar 18 2016 45.0 Call @ 2.10
$DUST #ShortPuts – it’s now…
$DUST #ShortPuts – it’s now cheaper to play DUST puts than NUGT Calls –
Sold DUST(Weekly) Feb 12 2016 9.5 Put @ 0.30
Sold DUST Feb 19 2016 9.0 Puts @ 0.35
ETF circus
#ContangoETFs
STO $DUST June 123 calls for 1.75
STO $TZA July 85 call for 5.90
STO $KOLD Feb 19th 270 calls for 1.40
STO KOLD May 310 call for 7.20
BTC KOLD Feb 120 puts for .40. Sold for 1.30 on 1/7
KOLD calls
#ContangoETFs STO KOLD Feb 19th 215 call for 1.80 (thanks @Ramie)
STO KOLD May 20th 300 call for 4.40
NUGT Mar calls
On the move up in the miners, sold $NUGT Mar 18 45 calls @ 1.00
TNA TZA
Anyone play these on a consistent basis? Would shorting calls in each be viable as a way to take advantage of any drag or compounding issues each hold.
I use spy to beta weight my portfolio and would probably short more tna calls vs tza calls for more overall negative deltas as the market moves up on this countertend rally towards major fib lines.
Thoughts? Suggestions? Please let me know your experiences with these ETFs.
Thanks as always!
KOLD trades
#ContangoETFs BTC $KOLD Feb 270 calls for .50. Sold for 16.50 on Dec 22nd
STO KOLD May 85 puts for 2.20
STO KOLD aug 70 put for 2.00
KOLD strangles
#ContangoETFs On the swings today, STO $KOLD August 80 put for 2.55 and Feb 220 call for 4.00.
NUGT calls
#ContangoETFs STO $NUGT Jun 65 calls for 1.50
TZA roll
#ContangoETFs #Rolling Rolled short calls into a strangle
BTC TZA Feb 18th 70 calls for 7.95
STO TZA March 18th 80 calls for 7.15
STO TZA March 18th 50 puts for 1.00
TZA rolling
#EarlyAssignment #Rolling #ContangoETFs
Although I have been rolling my $TZA position that started as a Jan 15th 50 calls, I did not roll my Jan 22nd 50 calls. One was assigned last night, so today rolled the whole position:
Assigned (1) TZA Jan 22nd 50 call
STC (100) TZA stock for 69.75
BTC (1) TZA Jan 22nd 50 call for 19.90
STO (2) TZA March 50 calls for 20.60
Contango ETF webinar – TODAY (Wednesday)
Learn about the ETFs that OptionsBistro traders love, like UVXY, NUGT, and KOLD! The products that, by design, are dragged downward over time, giving traders an edge.
If you have not previously replied, this is your chance… there are limited spaces remaining, so the first people to reply to this post will get the remaining slots. If you miss out, look for a recording that will be posted on this site for a limited time starting Thursday.
Thanks!
ETF circus
STO $KOLD August 265 call for 14.00
STO $DUST March 40 calls for 1.25
BTC $BOIL March 50 call for .05. Sold for 1.05 on Nov 5th
March strikes were added for KOLD, but highest strike is only 165, which is currently 5 points ITM.
DUST calls
Sold $DUST Mar 18 40 call @ 1.25
$GDX
No love for the Gold Miners right now. Market goes down, they go down. Market goes up, they go down.
$GDX as Gold Proxy
It is often talked about by traders and others on TV that when they think Gold is going to increase, they will tell people to buy $GDX as the way to do it. The idea being that the gold miners have a lot of leverage to increases in gold prices and hence will outperform gold. What we are seeing before our eyes is why that doesn’t work. Regardless of gold increasing in price, the stocks of the gold miners, are just that, STOCKS. When the market is selling off, they are selling off everything. Gold actually had a pretty good day today, up about $15, yet $GDX was down. It gapped up on the open, likely because the gold futures were up nicely, but then $GDX just sold off all day long.
If you overlay the $GDX on top of $GLD (or /GC) you will see a dramatic under performance of the $GDX vs Gold itself. I looked out over the past 9 months, 1 year and 3 years.
Lesson, if you think Gold is going to go up because of what is happening to the currencies, or you want to use it as protection during the high volatility we are in, buy $GLD (or $IAU) and forget about playing it through the miners.
KOLD rolling
#ContangoETFs – I made the error of getting too bearish on this and I sold Jan calls recently that will now be costly to cover. Fool myself once. I will now stick to only further OTM calls and puts. Not posting specific trades because I’m doing them piecemeal, but today closing Jan 150, 155, 159, and 160 calls. I bought some stock at 166.10 to have called away. Also sold Feb 120 puts for 2.20 and May 270 call for 9.00. Will sell more in coming weeks… right now giving my margin a rest. Still short some deep ITM calls in Feb, and numerous Feb and May calls over 220. #Rolling
ETF Webinar – January 20, 2016
A new webinar next week for what I call #ContangoETFs; the bull and bear 2x and 3x ETFs and ETNs that always head toward zero; how they work, and how to keep an edge in trading them. It will be Wednesday, January 20 at 5pm ET, 2pm PT. Limited spaces available; reply below this post if you’d like to attend.
Managing options positions through max Payne
I made a presentation last night to a local Options Trading group about #ContangoETFs, and I included the recent $KOLD trade through the swing from 90 to 220, where many of us held ITM naked calls on the whole ride up. I shared @fuzzballl‘s tactics of selling ITM puts, and of selling the long leg of a way-ITM spread while it was riding high. One member said you need to have “ice in your veins” to handle these types of trades without panic.
It is true that the way many of us trade UVXY and other naked options is not for everyone. I stressed last night and I stress again now, you must know the products you’re trading and you MUST control position size so your account can handle worst case scenarios.
For new members or followers to Bistro, be sure to ask any of the traders here any questions about their positions. This is a good group, always willing to offer advice. I learned much of what I do from many of these people, including @optioniceman who first taught me the tricks to selling naked premium.
(And if you want to see some of the KOLD trading, use search box in the right column and enter the term “KOLD”)
TZA rolling
#ContangoETFs #Rolling one position and opening another one. The April positions started as Jan 50’s, then rolled to April 60’s, now rolled to July 65’s. I can do this all year (at least until I run out of expiries).
BTC $TZA April 60 calls for 9.00 (sold for 5.85 last Thursday)
STO $TZA July 65 calls for 10.40
STO $TZA April 85 call for 4.05 (order in to sell another at 5.05)
Threading the needle
#ContangoETFs STO $KOLD Jan 15th 130 puts for 1.40.
KOLD between 130 and 150 is my sweet spot for January expiration… and then plummet below 100 for February expiry. Is that too much to ask?
More ETF action
#ContangoETFs
STO $DUST March 24 call for 1.75
STO $KOLD Jan 15th 159 call for 2.35
STO $KOLD May 280 call for 6.20
$GDX, $DUST, $NUGT
Wow, relatively minor move in Gold (/GC) today but $GDX is getting hit hard. $DUST and $NUGT really on the move.
KOLD pop
#ContangoETFs Selling whatever I can for options that expire Friday…
STO $KOLD Jan 15th 155 calls for 1.50
kick up DUST
#ContangoETFs STO $DUST June 25 call for 2.15
more KOLD cut
#ContangoETFs Two-day rally in Nat Gas and $BOIL is likely to see some relaxing on Monday. Hoping $KOLD waits for another week before getting below 120, but it’s definitely headed there.
STO KOLD Jan 15th 114 put for 2.25
STO KOLD Jan 15th 110 puts for 1.30
Out and Up
#ContangoETFs #Rolling
Man how I love these ETFs; able to roll 10 points higher and still take in a huge credit. $TZA hasn’t been to 60 since the Oct 2014 correction.
BTC TZA Jan 15th 50 calls for 4.65. Sold for 1.40 on Dec 7th.
STO TZA April 15th 60 calls for 5.85.
KOLD closing, VLO opening
#ContangoETFs BTC $KOLD Feb 19th 300 call for .90. Sold for 16.00 on Dec 18th. I don’t think this is at risk of being breached, but closing calls does release margin pressure. I am happy with over 90% of max.
STO $VLO Jan 22nd 74 call for 1.00, after selling a put on this morning’s dip. #Earnings
KOLD low
Nat Gas resuming its rally, and $KOLD hits its lowest point since November 19th.
STO $KOLD Jan 15th 119 put for 1.80
STO $BOIL March 18th 24 call for 1.30
#ContangoETFs
KOLD puts
#ContangoETFs STO $KOLD Jan 15th 120 puts for 1.30. Margin-free against numerous short calls and expiring in 6 trading days.
ETF calls
#ContangoETFs
STO $NUGT Jan 29th 35 calls for 1.15
STO $KOLD Feb 320 calls for 1.15
STO $KOLD Feb 220 call for 4.60
Thanks @optioniceman for the ideas.
TZA calls
#ContangoETFs STO $TZA Jan 22nd 50 calls for 2.50. Looking at the monthly chart on this, I’m not concerned that this position will remain a problem, even if it requires some #Rolling in the short term.
KOLD pop
Of course, my morning post yesterday probably signaled a low in $KOLD. Nothing like shouting that it will be below 100 in two weeks to get it to shoot higher immediately. Still, taking some put side risk off and adding some calls.
BTC $KOLD Jan 114 puts for 1.50. Sold for 3.45 on 12/3
BTC $KOLD Feb 90 put for 2.00. Sold for 4.00 on 11/23
STO KOLD Feb 240 call for 5.00
STO KOLD Feb 250/275 call spreads for 1.00 — the margin to sell 4 of these was less than selling one 250 call for 4.00
Options Bistro 