Greetings: WED 14 APRIL 2020: new trade today– ADDING A PUT TO CURRENT POSITION TO FORM A SHORT STRANGLE:
On April 1, 2020, I sold the JUN2020 45-strike Crude Oil CALL for 0.14.
see:
This week, I’m adding a short put, selling the $10-strike JUN2020 PUT for .14 or better for a $140 credit.
I am short the total STRANGLE JUN2020 45C/10P now for a total of .14 + .14 = 0.28 ($280).
Expiration is in only 4 weeks (30 days) on 14MAY2020. Prob OTM today is about 93%.
If you are just now creating a trade: The current initial margin for this short strangle is about: $2688
This means that currently the maximum potential return could be: $280/2688 or about 10.4% (excl comm.)
Although I expect more market volatility, I think these strike will contain price moves.
Be careful, these are perilous times with unexpected price swings.
Stay well everyone.
PS: In case you “missed the memo,” I am aside in other markets for now due to extreme volatility and risk. I do plan to resume grain, gold, and other trades this summer. I have dropped all membership charges for now, as I am unable to deliver a sufficient number of trades during these market extremes. A decision I made a few weeks ago. The website, for now, is open to all and free without any login or subscription charges. Please tell your friends if you like. They are welcomed to follow along.- Don
Don A. Singletary
You are welcomed to learn more about Day Trading the new Micro E-Mini Contracts at my new YouTube Channel. There are now 25 videos on how to trade them up on the channel (it is all FREE.) Here’s the link:
If you have a trading buddy that wants to learn to trade futures, trading the Micro E-minis is both fun and a great place to start. My new book is for beginners and listed here on Amazon.com
free prime shipping, only $12.30
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.
Greetings: WED 14 APRIL 2020: new trade today– ADDING A PUT TO CURRENT POSITION TO FORM A SHORT STRANGLE:
On April 1, 2020, I sold the JUN2020 45-strike Crude Oil CALL for 0.14.
see:
This week, I’m adding a short put, selling the $10-strike JUN2020 PUT for .14 or better for a $140 credit.
I am short the total STRANGLE JUN2020 45C/10P now for a total of .14 + .14 = 0.28 ($280).
Expiration is in only 4 weeks (30 days) on 14MAY2020. Prob OTM today is about 93%.
If you are just now creating a trade: The current initial margin for this short strangle is about: $2688
This means that currently the maximum potential return could be: $280/2688 or about 10.4% (excl comm.)
Although I expect more market volatility, I think these strike will contain price moves.
Be careful, these are perilous times with unexpected price swings.
Stay well everyone.
PS: In case you “missed the memo,” I am aside in other markets for now due to extreme volatility and risk. I do plan to resume grain, gold, and other trades this summer. I have dropped all membership charges for now, as I am unable to deliver a sufficient number of trades during these market extremes. A decision I made a few weeks ago. The website, for now, is open to all and free without any login or subscription charges. Please tell your friends if you like. They are welcomed to follow along.- Don
Don A. Singletary
You are welcomed to learn more about Day Trading the new Micro E-Mini Contracts at my new YouTube Channel. There are now 25 videos on how to trade them up on the channel (it is all FREE.) Here’s the link:
If you have a trading buddy that wants to learn to trade futures, trading the Micro E-minis is both fun and a great place to start. My new book is for beginners and listed here on Amazon.com
free prime shipping, only $12.30
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.