Family day... My family is sleeping so I'm writing an update!
So what did I do? Take the money and run? No... I got greedy.
I got called away as I had expected, but then I almost immediately re-purchased the position and wrote a new call based on my parameters.
But fundamentally my strategy had changed. I have been trying too hard to hold on to the underlying position. As I've been closing out my call positions and not letting them ride.
I did make a few bucks when I decided to close out. And as it turns out, that was the right thing to do anyway. The underlying position shot up 4% the day after I closed my call. So more potential profit in my pocket.
So... along comes Friday. Family day weekend and some holiday I have forgotten to look up in the US too which keeps all North American markets closed. So I closed out ALL my US ETF positions.
They had done so well for so many weeks in a row on their own.
Seconds after I got order-fill notifications, I got an e-mail from my brokerage saying they had finally processed my option-upgrade form so starting this week I'll be able to trade "naked puts."
This when used as I'm planning to drastically reduces my risk exposure. Using them as I have planned the market can go up and I'll make money. The market can go sideways and I'll make money. The market can go DOWN up to 5% (in a month) and I'LL STILL make money!
If the market goes down more than 5% in my 1-3 week time-frame then I will be out of pocket, but I can control how much I'm out by closing out my positions quickly as soon as they go under water.
I'll keep you posted!
Stay hungry my friends!