I put in a GTC order to make a closing purchase, buying back the Gold NOV19 1800-strike CALL for 0.40 ($40)
NEW TRADE: I sold the Gold DEC19 1800-strike CALL for 1.20 ($120) today.
I made a closing purchase today buying back the Gold DEC19 short 1250-strike PUT at 0.80 today. I sold it back on 16th JULY for 1.20, so there’s a small profit of $40 (not including comm.)
Comment: With the FED lowering rates by .25 yesterday, Gold prices in the face of the $US Dollar strength went down. This will settle down in a few days most likely into a new trading range. I don’t think Gold will get down to $1250 so much, but I put in an order to take a small profit on the DEC19 Gold 1250 PUT, and then I plan to sell another PUT when things settle down a bit. My reason for closing the NOV19 1800-strike Gold CALL is to take a nice profit, and then sell the DEC19 1800 CALL (sometimes this is called ‘rolling out’ an option.) A trader who picks this position might get a better fill than I did earlier today; it’s trading at 1.50 at midday.
Corn DEC19 futures contract has fallen more and is trading midday today at about 405.25 cents. I checked on the DEC19 360-strike PUT and I don’t see the risk/reward that I need to sell it (or any nearby strike.)
The FED rate cut giving the $US Dollar more strength is also (like Gold) what is pushing Crude Oil prices down.
Summary of my Positions 01 August 2019:
DEC19 Crude Oil short 80 CALL for .10 ($100)
DEC19 Crude Oil short 40 PUT for 1.80 ($180)
OCT19 Crude Oil 75-strike CALL for 0.05 ($50) OCT19 Crude Oil 40-strike PUT for 0.07 ($70)
Short Gold NOV19 1800-strike CALL I sold for $110
and today’s trade: short DEC19 Gold 1800-strike CALL for 1.20 ($120)
That is all today. thanks – Don
Don A. Singletary
TastyWorks: $2,000 minimum to open account. Easy online application, free ACH money transfers. Here’s my affiliate link forTASTYWORKS. International Accounts for 70 countries available.
The commentary and examples are for teaching purposes only and are not intended to be a trading or trade advisory service. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein on the web site and/or newsletter, are committed at your own risk, financial or otherwise. Trading with leverage could lead to greater loss than your initial deposit. Trade at your own risk. Investors and traders are responsible for their own investment/trading decisions including entries, exits, position, sizing and use of stops or lack thereof. This is not a trade advisory service and is for educational purposes only. The content on the pages here is believed to be reliable - but we cannot guarantee it.
Don A. Singletary is a teacher and writer. For 25 years he was a commodity risk management (hedge) consultant for major corporations. He is the author of Option Income Training Bulletin, the only such publication dedicated to teaching small/medium personal investors how to sell commodity options for a second income, a strategy traditionally used mostly by professional investors, the wealthy, and money managers.
While this website is for subscribers only, you can get full access with a free trial subscription. Also you may visit his blog with many trade examples and articles on this valuable strategy at: SellingCommodityOptions.com
Greetings: 01 August 2019 THURSDAY newsletter
Comment: With the FED lowering rates by .25 yesterday, Gold prices in the face of the $US Dollar strength went down. This will settle down in a few days most likely into a new trading range. I don’t think Gold will get down to $1250 so much, but I put in an order to take a small profit on the DEC19 Gold 1250 PUT, and then I plan to sell another PUT when things settle down a bit. My reason for closing the NOV19 1800-strike Gold CALL is to take a nice profit, and then sell the DEC19 1800 CALL (sometimes this is called ‘rolling out’ an option.) A trader who picks this position might get a better fill than I did earlier today; it’s trading at 1.50 at midday.
Corn DEC19 futures contract has fallen more and is trading midday today at about 405.25 cents. I checked on the DEC19 360-strike PUT and I don’t see the risk/reward that I need to sell it (or any nearby strike.)
The FED rate cut giving the $US Dollar more strength is also (like Gold) what is pushing Crude Oil prices down.
Summary of my Positions 01 August 2019:
DEC19 Crude Oil short 80 CALL for .10 ($100)
DEC19 Crude Oil short 40 PUT for 1.80 ($180)
OCT19 Crude Oil 75-strike CALL for 0.05 ($50)
OCT19 Crude Oil 40-strike PUT for 0.07 ($70)
Short Gold NOV19 1800-strike CALL I sold for $110
and today’s trade: short DEC19 Gold 1800-strike CALL for 1.20 ($120)
That is all today. thanks – Don
Don A. Singletary
TastyWorks: $2,000 minimum to open account. Easy online application, free ACH money transfers. Here’s my affiliate link for TASTYWORKS. International Accounts for 70 countries available.
The commentary and examples are for teaching purposes only and are not intended to be a trading or trade advisory service. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein on the web site and/or newsletter, are committed at your own risk, financial or otherwise. Trading with leverage could lead to greater loss than your initial deposit. Trade at your own risk. Investors and traders are responsible for their own investment/trading decisions including entries, exits, position, sizing and use of stops or lack thereof. This is not a trade advisory service and is for educational purposes only. The content on the pages here is believed to be reliable - but we cannot guarantee it.