30 April 2019 TUESDAY newsletter

Trades Today:

I made a closing purchase on my short JUL19  Gold 1450-strike CALLs for 0.30 ($30).  I had sold them for 0.90 ($90) and so excluding commissions, the profit is $60 each.

NEW GTC: I have entered a GTC order to make a closing purchase on my JUL19 Gold short 1200-strike PUT at 0.50 ($50).  That is where the option is currently trading, so it could get filled sooner than later.  I plan to sell an AUG19 PUT, but there was not enough premium at the 1150 or 1200-strikes today for me to do this.  I’ll wait and see what happens.

NEW GTC: I also entered a GTC (good til canceled) order to sell the  AUG19 Gold 1450-strike CALL  for 1.00 ($100).  This option is trading at 0.90 today.  Since I am already short the JUL19 Gold 1200-strike PUT at 0.90, there is no additional margin required for this trade (forms a short strangle.)

Note: Remember the underlying for the Gold JUL19 options is the AUG19 gold futures.  What all of the above is doing is basically legging out of my Gold JUL19 short strangle, and legging into the short AUG19 short strangles.  

I also plan to soon sell some Gold OCT19 short strangles.

NEW  TRADE: I also sold the NOV19 Soybean 1100-CALLs today for 3.0 cents ($150).  The BP effect (net margin = $298.25) so there is potential for about a nice return on these.  My reasons for selling this strike are identical to when I sold the 1200-strike earlier, giant soybean stocks.   So now, I’m short both the NOV19 soybean 1200 C and the 1100 C.


Summary of My Positions:

Short JUL19 Gold 1200-strike PUT for 0.90

The Gold JUL19 1450-CALL was closed today – and a GTC to close the 1200-strike PUT has been entered (see above “new trades”.)

This new Trade Origination button will take you back in time – to the post where the trade was originally placed, so you can review the chart, fundamentals, and the details of this trade’s selection.   This way you get much more than just the position listing. – DAS

Short Strangle:
Short SEP19 Crude Oil 80-strike CALL for 0.17
Short SEP19 Crude Oil 45-strike PUT for 0.17

Short Strangle: 
Short the JUL19 Crude Oil  75-strike CALL for 0.11 ($110)
Short the JUL19 Crude Oil 50-strike PUT for 0.15 ($150)

 Short the DEC19 Corn 330  for 2.0 cents ($100.)  The 540-CALL on Corn is closed of course, though it’s still on this chart.

Short the NOV19 Soybean 1200-strike CALLs for 2.125 cents.

And also short the NOV19 Soybean 1100-strikes as of (new trade) today for 3.0 cents ($150.)

Comment:  There is nothing I can really add on the new trades today, the gold and soybeans.  I did want to sell a PUT on the AUG19 gold today — to form the other side of a short strangle, but couldn’t find enough premium down at the 1200 and 1150 strikes right now, so will be keeping an eye on them for sure.  I also am shopping to sell more short strangles in Gold farther out in time.  I’ll update you when I find something out in OCT19 and DEC19 for Gold strangles.  There is some good time-value there and you can go take a look to consider what can and can’t be done right now. If you have any  questions, drop me an email.  Good trading. — Thank you – Don

Don A. Singletary

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