Comments: It’s a week of earnings reports for major stocks and the Indexes are steady and supported. The China/USA trade talks have some good news, though still fragile as we wait for details and an official agreements.
Unlike recent weeks and all the volatility, this last week has been slow and steady and most markets not really making any remarkable moves. The good news is that “slow and steady” is good news for option-sellers. Crude hasn’t budged $2 a barrel for two weeks now. Corn prices basis the DEC19 contract are this morning trading at 388.25 per bushel. I am still short the DEC19 420 CALLs and the harvest is fully underway. And Gold prices are steady also; with the stock market UP and steady, the stream of money from stocks to gold (“safe-haven-effect”) has slowed.
Summary of my current positions as of TUESDAY- 22 OCT 2019:
FYI: You may click the gold-colored Trade Origination button to see the original post on the date the trade was placed.
Crude Oil FEB20 short strangle, the 80 CALL and 35 PUT
Short DEC19 short 420-strike CALL
Short the FEB20 1900-strike CALL for 1.9 ($190).
As I mentioned in my last post, I’m looking for a chance to add a PUT to my FEB20 Gold position. I am short the 1900 CALL in that class already, adding a short PUT would form a short strangle. The 1350 PUT has traded 1.5 to 1..7 ($150 to $170) this morning . The OI (open interest) is 2,664 and the volume at mid-morning is only 25. I would rather sell the $1300 strike PUT ; it has twice the OI but at present, not enough premium. You of course can take a look for yourself at the matrix and make a decision for yourself. You might study the strikes from $1400 down to $1300, the Prob OTM in that range is 87.69% at $1400, up to 97.86% at the 1300 strike.
Summary: I am quite content at the moment to be ahead on my Crude and Gold positions, and about even on my short DEC19 Corn 420 CALLs. So the plan this week is to relax a bit and continue to gather decaying time premium. Have a great week ahead. – Don
Don A. Singletary
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I do a lot of my own trading with TastyWorks because I like the easy-to-use platform and they have lower commissions than most. The customer service is outstanding. I have an affiliate link and recommend them often for months now and I’ve never had any negative feedback. They also have excellent free mobile apps that are easy to use- and they have ACH free money transfers to-and-from you bank account (usually one day free service.) TastyWorks has just joined Schwab, ThinkOrSwim, and other brokers and introduced NO Commission stock trading.
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. This link is my affiliate link.
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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: 22 OCT 2019 Tuesday:
Comments: It’s a week of earnings reports for major stocks and the Indexes are steady and supported. The China/USA trade talks have some good news, though still fragile as we wait for details and an official agreements.
Unlike recent weeks and all the volatility, this last week has been slow and steady and most markets not really making any remarkable moves. The good news is that “slow and steady” is good news for option-sellers. Crude hasn’t budged $2 a barrel for two weeks now. Corn prices basis the DEC19 contract are this morning trading at 388.25 per bushel. I am still short the DEC19 420 CALLs and the harvest is fully underway. And Gold prices are steady also; with the stock market UP and steady, the stream of money from stocks to gold (“safe-haven-effect”) has slowed.
Summary of my current positions as of TUESDAY- 22 OCT 2019:
FYI: You may click the gold-colored Trade Origination button to see the original post on the date the trade was placed.
Crude Oil FEB20 short strangle, the 80 CALL and 35 PUT
Short DEC19 short 420-strike CALL
Short the FEB20 1900-strike CALL for 1.9 ($190).
As I mentioned in my last post, I’m looking for a chance to add a PUT to my FEB20 Gold position. I am short the 1900 CALL in that class already, adding a short PUT would form a short strangle. The 1350 PUT has traded 1.5 to 1..7 ($150 to $170) this morning . The OI (open interest) is 2,664 and the volume at mid-morning is only 25. I would rather sell the $1300 strike PUT ; it has twice the OI but at present, not enough premium. You of course can take a look for yourself at the matrix and make a decision for yourself. You might study the strikes from $1400 down to $1300, the Prob OTM in that range is 87.69% at $1400, up to 97.86% at the 1300 strike.
There are charts for my current trades recently posted at this link: the 15 OCT 2019 post: https://www.timefarming.com/blog/15-october-19a/
Summary: I am quite content at the moment to be ahead on my Crude and Gold positions, and about even on my short DEC19 Corn 420 CALLs. So the plan this week is to relax a bit and continue to gather decaying time premium. Have a great week ahead. – Don
Don A. Singletary
Trial Subscribers: Subscribe today and don’t miss an issue. Thank you.
Available with free Prime Shipping at Amazon.com
I do a lot of my own trading with TastyWorks because I like the easy-to-use platform and they have lower commissions than most. The customer service is outstanding. I have an affiliate link and recommend them often for months now and I’ve never had any negative feedback. They also have excellent free mobile apps that are easy to use- and they have ACH free money transfers to-and-from you bank account (usually one day free service.) TastyWorks has just joined Schwab, ThinkOrSwim, and other brokers and introduced NO Commission stock trading.
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. This link is my affiliate link.
***************
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.