Looking forward, election risk should creep back in…and JNUG

I peaked at the debate, but quickly turned off the television. I did not watch it on my smartphone or iPad or laptop or anything else. I’m not a very good voter. In fact, I’m forcing myself to write in a candidate this time, with no ideological affiliations…or the stain of political corruption. I’ve never written in a candidate. I’ve always settled for the lesser of…

I may take some more options trades as election risk creeps back into the markets. The original strategy this month was to reduce exposure as much as I could, and to hold off on initiating new positions until after the election. I’m rethinking that. Put calendars are a possibility…gonna have to be careful about that. Debit spreads where I have a higher level of confidence in direction. Maybe some ratio spreads. Other ideas are welcome.

I expect gold to consolidate or rise slightly as election day approaches. Both scenarios could push the JNUG trade back into marginal profitability. With just 12 days to go, and one more week of intended holding time, an adjustment/roll isn’t out of the question… just have to watch the gamma risk and find some volume to trade into. If assigned, I’m not in a bad position, actually.

jnug-2016-10-09_23-09-21

jnug-chart-2016-10-09_23-10-33

This isn’t a huge trade. Max profit represents less than 0.25% of account equity, while risk isn’t that great to the downside. It’s the first trade I’ve made in a 3x ETF, in a volatile underlying, at a volatile time of year, with significant event risk in front of it…so I’m watching closely to see if this is something I want to explore down the road. So far, I’m happy with the experiment.

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