18 March 2019 MONDAY newsletter

newsletter  18MAR2019

Closing Purchase Trade today:

I bought back (a closing purchase) my short Crude Oil JUN19 45-strike PUTs this morning for a price of 0.09 for a +$150 profit (not incl comm)   I had sold this PUT as one leg of a Crude JUN19 short strangle:  short 70-strike CALLs and short the 45-strike PUTs on February 21, 2019.  Visit this link that explained and mapped out this trade: https://www.timefarming.com/blog/21-february-2019

I sold this 45 PUT for 0.24 ($240) and closed it this morning for 0.09 ($90) for a profit of $150 per option (not incl. commissions.)  The trade time start 21FEB to today end 18MAR was 25 days.  The initial margin for the total short strangle was $886, so the ROI (return on investment) was at least 16.9% in 25 days.

Entered new GTC order this morning:  Buy back (a closing purchase) my short Gold JUN19 1200-strike PUT for 0.30 ($30).  I sold this option(s) for $140 each – back on February 11, 2019, about 35 days ago.  Just so you know: I am choosing to exit this PUT with a $110 profit; it is true that it almost certainly will expire worthless, but I am choosing to not risk my current profit in trying to collect the remaining $30.  Other traders might not agree and that’s fine. There are still 71 days until this option expires.  Go back the 11FEB post – and visit the details at this post at this link to see the chart for this trade:

11 February 2019 Monday new trades – newsletter today.

In the post (above see 11 FEB), there is a training discussion of how/why I selected which strikes to sell; you might find it helpful to view it again (it is very a very short video that discusses strike selections.)

Just so you know:   I always use examples with a quantity of 1 (one) option per trade.  This is not because I only trade one of each option, it is to keep the illustrations simple and easy to understand in the newsletter. 

Please remember the strategies of the trades I post here are risky, and not suitable for all traders.  Posts here are for educational purposes only.

Summary of My Positions:

Short JUN19 Gold 1500-strike CALL for 2.0 ($200)

Short strangle:
Short SEP19 Crude Oil 80-strike CALL for 0.17

Short SEP19 Crude Oil 35-strike PUT for 0.09  (total of 0.26 = $260)

 Short the JUN19 Gold 1200-strike PUT for 1.40 ($140)

 Sold CORN DEC19 330-strike PUT for 2.00 cents ($100)

This is an educational publication.  This type of investing is risky and not suitable for many investors. All my trades are illustrated with commentary, charts, and research for training purposes.

That is all today. Thank you – Don

Don A. Singletary


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.