05 November 2019 TUESDAY Trade Commentary and Newsletter
Greetings: Closing three trades yesterday/today:
These 3 trades have been outstanding for a while and I’ve closed them yesterday and this morning, all for a nice profit:
Crude Oil FEB20 short strangle, the 80 CALL and 35 PUT
This FEB20 Crude Oil 80C/35P short strangle was sold for a total of 0.33 ($330) back on September 30, about 36 days ago. This trade went smoothly and time-decay did its work well. I closed out this trade for 0.11 ($110), so the profit = $330 minus $110 = +$220 profit on each strangle.
Short the Gold FEB20 1900-strike CALL for 1.9 ($190).
This short FEB20 1900-strike Gold CALL was sold for $190, also back on September 30, and I made a closing purchase at 0.5 ($50), for a net profit of $190 – $50 = +$140 on each CALL
Short Corn DEC19 short 420-strike CALL
This short DEC19 420-strike Corn CALL was sold for 1.625 ($81.25) each. I made a closing purchase at one-half cent $25) for a profit of (81.25 – 25) = +56.25 each.
Comments: 05NOV2019
I’ll be putting up some new trades early next week. After closing out these three trades, I now have no positions outstanding at the moment. The stock market has been soaring this week (so far!) and after posting record highs yesterday, at midday today -the market is steady but not really going anywhere one way or the other yet.
I didn’t place any new positions at all in October, still the last 30 days have yielded the profits taken in the three positions above. The take-away from that is: that more activity isn’t always the way to more profits. We option sellers LIKE slow and steady with no surprises.
Gold (FEB20) is trading at $1487, down by about $24 per ounce this morning – and a whopping 413 dollars below that 1900-FEB CALL that I just closed. Just two months ago, all the talk was about the money flowing into gold futures, physical gold, and gold ETF’s. As you know gold prices have an inverse relationship with the stock market. From here if gold goes UP, I sell CALLs again. If it goes DOWN, I sell PUTs. From there, I will watch for opportunity to turn that trade into a short strangle.
In the news this week are several articles about OPEC losing its world dominance of the oil market. So long as the global economy doesn’t take a huge dive, oil prices may continue to trade in recent ranges. I’ll be shopping to sell more Crude options next week.
Coming up this Friday, (8th NOV 2019) at noon Eastern Time, the next USDA – WASDE (World supply-demand estimates on grains.) This report could set the tone for price trends in Corn for the next few months. Yesterday, the weekly crop progress report indicated 96% maturity on the new corn crop, the usual average is 100% by this time of year. See that report at this link, if you like: https://usda.library.cornell.edu/concern/publications/8336h188j
If you are a trial subscriber, know also that several videos about selling commodity options are also on this site under the tab: VIDEO TRAINING LIBRARY
In next week’s commentary on Tuesday, I comment on the WASDE and other items about new trades coming up. That is all today, have a great week and thank you. – Don
Trial Subscribers: Subscribe today and don’t miss an issue. Thank you.
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: Closing three trades yesterday/today:
These 3 trades have been outstanding for a while and I’ve closed them yesterday and this morning, all for a nice profit:
Crude Oil FEB20 short strangle, the 80 CALL and 35 PUT
This FEB20 Crude Oil 80C/35P short strangle was sold for a total of 0.33 ($330) back on September 30, about 36 days ago. This trade went smoothly and time-decay did its work well. I closed out this trade for 0.11 ($110), so the profit = $330 minus $110 = +$220 profit on each strangle.
Short the Gold FEB20 1900-strike CALL for 1.9 ($190).
This short FEB20 1900-strike Gold CALL was sold for $190, also back on September 30, and I made a closing purchase at 0.5 ($50), for a net profit of $190 – $50 = +$140 on each CALL
Short Corn DEC19 short 420-strike CALL
This short DEC19 420-strike Corn CALL was sold for 1.625 ($81.25) each. I made a closing purchase at one-half cent $25) for a profit of (81.25 – 25) = +56.25 each.
Comments: 05NOV2019
I’ll be putting up some new trades early next week. After closing out these three trades, I now have no positions outstanding at the moment. The stock market has been soaring this week (so far!) and after posting record highs yesterday, at midday today -the market is steady but not really going anywhere one way or the other yet.
I didn’t place any new positions at all in October, still the last 30 days have yielded the profits taken in the three positions above. The take-away from that is: that more activity isn’t always the way to more profits. We option sellers LIKE slow and steady with no surprises.
Gold (FEB20) is trading at $1487, down by about $24 per ounce this morning – and a whopping 413 dollars below that 1900-FEB CALL that I just closed. Just two months ago, all the talk was about the money flowing into gold futures, physical gold, and gold ETF’s. As you know gold prices have an inverse relationship with the stock market. From here if gold goes UP, I sell CALLs again. If it goes DOWN, I sell PUTs. From there, I will watch for opportunity to turn that trade into a short strangle.
In the news this week are several articles about OPEC losing its world dominance of the oil market. So long as the global economy doesn’t take a huge dive, oil prices may continue to trade in recent ranges. I’ll be shopping to sell more Crude options next week.
Coming up this Friday, (8th NOV 2019) at noon Eastern Time, the next USDA – WASDE (World supply-demand estimates on grains.) This report could set the tone for price trends in Corn for the next few months. Yesterday, the weekly crop progress report indicated 96% maturity on the new corn crop, the usual average is 100% by this time of year. See that report at this link, if you like: https://usda.library.cornell.edu/concern/publications/8336h188j
And here’s the link for this Friday’s WASDE: https://www.usda.gov/oce/commodity/wasde/ These links and many others are posted on this website under the tab: RESOURCE LINK LIBRARY
If you are a trial subscriber, know also that several videos about selling commodity options are also on this site under the tab: VIDEO TRAINING LIBRARY
In next week’s commentary on Tuesday, I comment on the WASDE and other items about new trades coming up. That is all today, have a great week and thank you. – Don
Trial Subscribers: Subscribe today and don’t miss an issue. Thank you.
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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 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.