Greetings: TUESDAY 10th September 2019 newsletter
I made a closing purchase and bought back my short Crude Oil 35-strike PUT for 0.04 ($40). I had sold it for 0.09 ($90), so there is a +$50 profit per option – excluding commissions.
Comment: As I alluded to yesterday, in such volatile markets as we have now, I am eager to protect profits on positions by banking them. I closed out this DEC19 35-strike PUT not because I felt the strike was in any danger but because I wanted to bank a profit and not leave it at-risk in a volatile market. It is my intention to sell another PUT in the Crude Oil market soon. Crude Oil inventories are more than sufficient against current demand, and without unexpected outside influences, I expect crude to continue to range trade for the next couple of months within bounds of a $45 to $60. DEC19 Crude is up about $3 to $57.70 since I sold that 35-PUT. On a pullback, I will sell more PUTs if enough premium is there at the right risk level (>90% Prob of profit.)
Corn: The all-important USDA/WASDE report this Thursday at noon Eastern Time. Corn prices are up a little this morning about 3.0 cents at 357.50/bushel. See my comments from yesterday, if you missed them at (scroll down to commentary): SEPT 9th Commentary
Soybeans: After the WASDE on Thursday, I might also be shopping to sell CALLS on soybeans (probably the NOV19 class.)
That is all today. Thank you. -Don
Don A. Singletary
If you are a trial subscriber and haven’t seen the SellingCommodityOptions.com blog, there are many articles there on this type of trading.
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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.
Greetings: TUESDAY 10th September 2019 newsletter
I made a closing purchase and bought back my short Crude Oil 35-strike PUT for 0.04 ($40). I had sold it for 0.09 ($90), so there is a +$50 profit per option – excluding commissions.
Comment: As I alluded to yesterday, in such volatile markets as we have now, I am eager to protect profits on positions by banking them. I closed out this DEC19 35-strike PUT not because I felt the strike was in any danger but because I wanted to bank a profit and not leave it at-risk in a volatile market. It is my intention to sell another PUT in the Crude Oil market soon. Crude Oil inventories are more than sufficient against current demand, and without unexpected outside influences, I expect crude to continue to range trade for the next couple of months within bounds of a $45 to $60. DEC19 Crude is up about $3 to $57.70 since I sold that 35-PUT. On a pullback, I will sell more PUTs if enough premium is there at the right risk level (>90% Prob of profit.)
Corn: The all-important USDA/WASDE report this Thursday at noon Eastern Time. Corn prices are up a little this morning about 3.0 cents at 357.50/bushel. See my comments from yesterday, if you missed them at (scroll down to commentary): SEPT 9th Commentary
Soybeans: After the WASDE on Thursday, I might also be shopping to sell CALLS on soybeans (probably the NOV19 class.)
That is all today. Thank you. -Don
Don A. Singletary
If you are a trial subscriber and haven’t seen the SellingCommodityOptions.com blog, there are many articles there on this type of trading.
Sign up now, so you won’t miss any issues of the newsletters and commentary:
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.