I have posted a couple of systems here over the years. Here we go again. GLD is an interesting market, with steady upward movement, but with breathtaking valleys. So, how do I make money here besides buy and hold. First, I buy a deep ITM call, 3-6 months out. I then sell a call in the front month with a strike price above the market. Buy two or three of these and you have 100+ deltas. An account of $10k can carry 200 deltas or better! So, I have the foundation, where I can just sit back and watch GLD move up, and sweat it out when it makes one of those astonishing moves down. Make a thousand dollars, and lose it all in one or two days. Two steps forward, and one step back, so to speak. So, today, with GLD at 138.70, we open three jun 125/feb 144 call positions at 14.70 each. Three of these gives us 140 deltas. This is well within our $10k account size. This gives us a risk of $600 and a possible profit of $1600. I am looking at support at 135 for max loss but it could go down significantly more. Actually I would not open a position at this location. I would wait for a stronger support level to protect my max loss. This has been very profitable for me and my small account over the past few weeks. But I thought about those huge moves down. How can I actually look forward to them. Well, when I think things have moved up to some target, such as 140 in my example here, I liquidate one of my positions. If it keeps going up, I enjoy the profits of the two positions. If it goes down, I buy back the short calls at the lower price, and buy a new Jun call. As it moves up, I have the benefit of the naked long calls, and, at some point, I then sell the 144 calls (or something else) at the higher premiums. I am now back to my original three positions, but with additional profit on the way down and back up, instead of just riding it out. This looks a whole lot like gamma scalping. Short the calls when they are high, and buy them back when the market moves down. I am assuming that GLD is bullish over the long term, and this just adds to my profit profile. And, of course, in those times where GLD is just sitting around, I have a nice daily theta from my short calls. Anyway, nothing really new or astonishing. A gamma scalping strategy with covered option calls. And GLD is an ideal market to play this game.