Sell SLV and GDX (buy back short puts)

I sell SLV buying back my short Jun 35 puts, SLV @32.1. I take a large dose of medicine, possibly the worst trade in the four years that I've been blogging. The 880% loss on the value of the option, wipes out months of many small profits from selling puts. This is the risk of the strategy, that something blows up and I watch it go. This biggest mistake was on the entry, where greed and the high premiums lured me in. The minor recovery rally was an opportunity to get out with a large loss instead of a monster hit I am taking now. As I type this up, it looks like I picked a bad time as SLV has recovered a bit to 32.4, but that too happens if a person cuts losses.

I also sell GDX buying back my short Jun 51 puts with GDX @54.2 for a 250% loss on the value of the option.

I had more risk on the table than I would like and needed to cut back. It is painful to take some huge losses, but better that than to “go down with the ship” and see the entire account become threatened.

Long EEM, GDX, GLD, IWM, SPY
TBT/TLT = short strangle on TLT