Trade Details: Yesterday I posted on Twitter that I sold a March Put in $GDXJ the Junior Gold Miners ETF. The video below goes through the trade entry, my reasons for taking the trade, and the roll point. I sold a slightly higher delta than normal partially because $GDXJ is a low priced stock. Since […]
Casual investors are usually discouraged from selling naked options because naked options are considered “risky.” The occasional exception is selling naked puts, however, naked puts are frequently presented as a strategy to buy stock at a lower price. I’m not totally sure why it’s less risky for a causal investor to buy a stock that’s […]
Big Picture: Good morning everyone (well, everyone in the US anyway). Last week I mentioned that I thought the tides might be changing. This week we saw a continuation of last weeks move in both Bonds and Gold and it appears as though the downtrend in those markets has slowed. I think what we’re seeing […]
Overview: This is brief overview of the $SPY naked put I sold Monday. The trade was tweeted shortly after entry and on Monday was down a little bit of money. Yesterday $SPY was stronger and that moved the trade back into positive territory. $SPY Naked Put (pTheta Trade): On Monday we were 95 days until […]
Big Picture: The tides might be changing. Stocks were up a little bit this week, but both Bonds and Gold ended with big moves higher. It looks a slowing in the downward trend might be taking place in those markets. Despite being short Bonds and Gold, all of my options positions are still positive. […]
Overview: Short gamma trading strategies are frequently described as picking up pennies in front of a steamroller. While I realize that intuitively it sounds like a bad idea to hang out in front of heavy equipment, I decided to take a look back at 2013 to see what would have happened if I spent the […]