01 August 2019 THURSDAY newsletter

Greetings:  01 August 2019 THURSDAY newsletter

  1.  I put in a GTC order to make a closing purchase, buying back the Gold NOV19 1800-strike CALL for 0.40 ($40)


  2. NEW TRADE: I sold the Gold DEC19 1800-strike  CALL for 1.20 ($120) today.


  3. 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

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