Gold and miners might be finally ready to make a run with a nice breakout of resistance line here. MACD showing bullish confluence and 9/20 moving average cross
I hope you're right. I have a couple of GDX May 20 '22 $35 Calls
FriscoTrades
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@ichman, a good idea could be to sell calls higher strike on a nice green day to create a spread and protect you from downside risk then buy it back on the red days ... rinse repeat
ichman
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@FriscoTrades, I like it! Can't get too badly burned, since I won't actually be naked, and the cheaper options will be in the money. Thanks
FriscoTrades
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@ichman, exactly, I opened a few spreads initially , but if you leg in (or go long first then short a call later), it's important to only sell the call on a nice green day and capture the most IV in the premium when you sell .
Good Luck !
ichman
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@FriscoTrades, I'm guessing that you sell in-the-money calls, so there's more premium? How deep in the money, as a rule of thumb? And how far out would you generally go? If the trade turns against me, I can worst-case liquidate both sets of calls...