I tried many,many combinations, but no way I can get credit by baying back immediately some of the original strikes.
Are you really buying them immediately after putting on original trade?

Thanks in advance

Glad you are still there.
Now that was a quick answer! Thank you.
But I do have some more questions or ideas.
1) Maybe I am wrong, but if you do a BWB for about 180 or more days to experiation you have at least 3 advantages:
a) more premium (not plenty, still more…)
b) if the market price goes wrong for a while, it could still be possible that price will correct to the right direction.
c) there is more time to let your pending debit spread get filled somewhere during that period.
2) I had a look at AAPL and they really have nice premiums for a BWB, sometimes more than 50% of the $5 strike distance.
I did a papertrade on this one (at the beginning of March the JUNE options, and the pending spread already got filled….).
Do you know with your experience if I overlooked something important concerning AAPL? It seems a very good candidate.

I do continue to trade these; I’ll add positions on pivot lows using options about 100 days out.

I am not a prognosticator on the direction of Gold, however, I don’t expect gold to collapse. If your theory is that gold will collapse, this is not the strategy you should trade.

ITM options used to freak me out, quite honestly. However, I’ve learned to mentally handle the inevitable knowing the position is really the same, just that my Greeks have changed. If I initiate a 10 lot trade or I build a position into a 10 lot trade, the exercise cost for each leg is equal to the cost of trading out of the position 1 contract at a time. In other words, the cost to exercise a leg is $15 – I pay 1.50/contract; so the cost is the same.

Start small and trade until you get comfortable – it may take a year or two – and remember to always manage risk first.

Owen

The risk comes from expiration and automatic exercise at expiry.

Imagine that at the expiry, the price of GLD falls right between the short option and any of the long options. This means some are in-the-money and some are out-of-the-money. The broker will calculate any net long/short options at the expiry. Imagine that you have a net short / long position that is in-the-money. On the Monday following the expiry, GLD would have moved because GLD tracks the worldwide movement of gold, which is already traded in Asia and Europe before US market opens. You can be in for a nasty surprise that you have to cover any short or long GLD position. This could put a significant of your original investment at risk.

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