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Thank you for catching that, I need to start to read through what I am writing. I've unknowingly uttered several odd statements over the past few weeks, maybe I have a tumor causing abnormal typos?
As with everything else in life, if you want something you sold back, you buy it back....
Very, very risky but possible. I have never done it. The risk is that the futures whipsaws the opposite way and you are losing more money on it than you were on the option.
In the last 2.5 years I sold 8,524 options.
7,713 of them I kept to expiration and they expired worthless or OTM. 90% (none were ITM)
8,099 of them expired net profitable. 95%
Right now I am sitting on my hands and riding out the positions I currently have on. I have decided that you don't have to trade every day. That it's better to be safe than sorry. I will let the markets calm down before I put on new positions.
Right now my Sep GC puts, Sep & Oct NG calls and Sep KC strangles (expire Friday) are OK. My Sep 65 crude puts are feeling a little heat, but they expire in 9 days. My Sep RB 2.20 puts are feeling some heat.
My 1800 Sep GC calls are feeling the most heat. Will GC go close to 1800 in 18 days? I doubt it, but to be safe I will probably dump them. I only have 10.
I don't trade on volatility. I sell options based on where I don't think the market is likely to go. That way I don't need the market to move a certain direction. Just not move to much against my position.
For example to others reading this thread, I could have sold 1300 gold puts when the market was at 1500. As long as the market stayed above 1400 I was fine. Of course violent moves against my position can cause problems.
It's easier to predict where the market isn't going with a cushion than to predict which way it is going with no cushion.
Yes gold is a surprise. I expected 1750-1800 this fall but not now. That is why I didn't put on many gold calls.