My GTC order to close out my Crude Oil short strangle was filled at 0.05.I shorted the 75-strike CALL and the 40 PUT for a total of $140 back on 13th November, and it was closed out at 0.05 for a profit of $90 per strangle.
NEW TRADE TODAY: I sold a MARCH 2020 CRUDE OIL short strangle this morning. I sold the 70 Calls and the 45 Puts @ 0.14 for each of then, total of 0.28 ($280.)
Init. Margin: $1650
Prob OTM: 95% (at expiration)
Expiration: 14 FEB 2020
Potential return: (assumes no drawdown, theoretical) 16.9% (not incl comm.)
NEW TRADE TODAY: I sold a MARCH 2020 Gold 1350-strike PUT for 0.80 ($80) today.
Init. Margin = $1713
Expiration: 77 days on 25th of FEB 2020
The underlying is the APRIL20 Gold Futures
Prob OTM: 96%
Comment: With the Stock Market at all time highs, there could be some consolidation and/or downturn; this event would drive gold prices UP, and then I intend to sell a call at around $1700 or better. I feel it is too risky to sell the 1700 CALL at this time, so I will try to ‘leg in’ to a short strangle if the opportunity arrives. I like the short strangles since they only require ONE margin and that delivers more “bang for the buck” so-to-speak.
So two new positions today. That is all my trades today.
Comment: CORN
Today at NOON Eastern Time the WASDE (world supply-demand estimates) report will be posted. I expect that it will show a lower yield by either/or a lower per acre yield and a reduction in harvest acres. Here’s the link for the report at Noon today: https://www.usda.gov/oce/commodity/wasde/
Here is a copy of this week’s Crop Progress (below): You can see that with both last year and the 5-year average harvest at this time of year at 100%, the report this week only shows 92% harvested. The WASDE today may confirm some yield reduction. I want to sell some MAR2020 Corn PUTS, but will wait to see the report today and then what happens to prices.
That is all today. Thank you. -Don
Don A. Singletary
Trial Subscribers: Subscribe today and don’t miss an issue. Thank you.
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A Seasonal Gift Idea: If you have a young person or couple who might appreciate learning more about personal investing, please consider this book: Stock Market for Beginners: The Easiest Guide to Personal Investing Ever Written It is a non-technical book easy-to-understand and has a lot of motivational material to encourage young people to invest. Several of the Atlanta area high schools are using this book for financial literacy classes to motivate student to start investing young. It is less than $10 and that includes FREE PRIME shipping. This book has over 30 5-STAR reviews on Amazon and thousands have been purchased.
Have any interest in day trading the new Micro E-mini stock index futures? If so, please consider my new book on the subject available on Amazon: (read more at this 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.
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: Tuesday 10th December 2019:
My GTC order to close out my Crude Oil short strangle was filled at 0.05. I shorted the 75-strike CALL and the 40 PUT for a total of $140 back on 13th November, and it was closed out at 0.05 for a profit of $90 per strangle.
NEW TRADE TODAY: I sold a MARCH 2020 CRUDE OIL short strangle this morning. I sold the 70 Calls and the 45 Puts @ 0.14 for each of then, total of 0.28 ($280.)
Init. Margin: $1650
Prob OTM: 95% (at expiration)
Expiration: 14 FEB 2020
Potential return: (assumes no drawdown, theoretical) 16.9% (not incl comm.)
NEW TRADE TODAY: I sold a MARCH 2020 Gold 1350-strike PUT for 0.80 ($80) today.
Init. Margin = $1713
Expiration: 77 days on 25th of FEB 2020
The underlying is the APRIL20 Gold Futures
Prob OTM: 96%
Comment: With the Stock Market at all time highs, there could be some consolidation and/or downturn; this event would drive gold prices UP, and then I intend to sell a call at around $1700 or better. I feel it is too risky to sell the 1700 CALL at this time, so I will try to ‘leg in’ to a short strangle if the opportunity arrives. I like the short strangles since they only require ONE margin and that delivers more “bang for the buck” so-to-speak.
So two new positions today. That is all my trades today.
Comment: CORN
Today at NOON Eastern Time the WASDE (world supply-demand estimates) report will be posted. I expect that it will show a lower yield by either/or a lower per acre yield and a reduction in harvest acres. Here’s the link for the report at Noon today: https://www.usda.gov/oce/commodity/wasde/
Here is a copy of this week’s Crop Progress (below): You can see that with both last year and the 5-year average harvest at this time of year at 100%, the report this week only shows 92% harvested. The WASDE today may confirm some yield reduction. I want to sell some MAR2020 Corn PUTS, but will wait to see the report today and then what happens to prices.
That is all today. Thank you. -Don
Don A. Singletary
Trial Subscribers: Subscribe today and don’t miss an issue. Thank you.
click here OR the picture below.
A Seasonal Gift Idea: If you have a young person or couple who might appreciate learning more about personal investing, please consider this book: Stock Market for Beginners: The Easiest Guide to Personal Investing Ever Written It is a non-technical book easy-to-understand and has a lot of motivational material to encourage young people to invest. Several of the Atlanta area high schools are using this book for financial literacy classes to motivate student to start investing young. It is less than $10 and that includes FREE PRIME shipping. This book has over 30
5-STAR reviews on Amazon and thousands have been purchased.
Under $10 w/ free prime shipping
Have any interest in day trading the new Micro E-mini stock index futures? If so, please consider my new book on the subject available on Amazon: (read more at this link)
Free prime shipping on Amazon
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.