The reason this Zero blog has been idle recently is that with the market virtually unchanged for the past 19 months, DITM positions are also the same, except for option rollouts. Mostly I have been following gold and hedges with UVXY (which decays like an option).
NUGT is a gold triple strength ETF, 3 X the GDX gold miners. It is as volatile on the downside !! as the upside, which has leaped from around $20 (where I first bought it) to its current 160 level just within this year (6 months). Not unlike DITM, I have been walking up ITM covered calls, milking the huge IV (premium) at 26, 50, 60 and now 110.
With the UVXY, I have recently been selling puts to take on this double-strength hedge, in case of a severe downturn in the stock market. This is the second longest Bull market, is in the danger cycle of the year, and the wrong sectors seem to be leading it. With the futures rollovers, however, it is a wasting asset, which, like the TVIX, go to near zero and do a reverse split.
Handle these with extreme care!!
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