NaughtyPines
Long

OPENING: GDX MARCH/SEPT 18/20 UPWARD PUT DIAGONAL

AMEX:GDX   VANECK VECTORS ETF TRUST GOLD MINERS ETF
... for a .04/contract credit.

Max Profit on Setup: $4/contract
Max Loss on Setup: $196/contract (width of the spread minus credit received)
Break Even on Setup: 19.96
Delta: 27.37
Theta: .43

Notes: Taking a small bullish shot on gold weakness here with a net credit, calendarized short put vertical. Naturally, I'm not collecting much credit here on fill, but I'll be looking to roll the short put aspect over time to collect additional credit, and look to manage it for a take profit that's at least one-third the width of the spread.

Comment: I can do various things here -- buy back the long put, which has more than doubled in value, just work the short put here on out; do the same thing, but sell a short call against the short put, transforming it into a skewed straddle/synthetic covered call, etc. I'm leaning toward selling the long put now to capture the gains on that end of the stick, selling a 20 call against, and then working it as a 20 short straddle, although the 20 short call isn't paying much (.11 in September; .23 in October; .33 in November ... ).
Trade active: With already very little extrinsic left in the Sept 20 short put, rolling out to Dec for a .36/contract credit (both Oct and Nov were paying even less) ... . Scratch at .40/contract.
Trade active: Late Post/December Cycle Cleanup: Rolled out the Dec 20 short call to Jan for a .21/contract credit. Scratch at .61/contract.
Good luck here. I thought about going long myself last week purely based off the massive support at the 21 level but got gold never does what it should. With everything going on in Turkey and the exposure to EURO banks, gold should be going parabolic but the market is irrational and I'd even say manipulated. Central banks will always direct the market into stocks/bonds/dollar as safe haven before gold. Thanks for the update. I'm interested to see how you manage this.

I took profits on XOP yesterday but I'm still with you on the Qs.
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NaughtyPines FiberStage
@FiberStage, Fortunately, it's a small play with limited max loss and a long time to work out. That being said, it may be a slog if price stays deep under the 20, since I won't collect all that much extrinsic on roll, so at the very least, I may have to sell a call against to get anything decent in terms of credit ... . Thumbs up on the XOP; I also took some profit via a roll to Nov when I probably just should have covered the Oct setup ... .
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