NOTE: You will find a summary of my current positions in the post below (just scroll down to see it):
There’s not a lot of change in the new week. Gold prices down again today as the stock markets ride the highs on the tail of trade talks. When the Dow breaks down next, gold prices will continue to waffle and prices should remain far below my FEB20 $1900-strike.
The USDA World Supply-Demand Projections were posted here in the most recent comments. Here are few of the charts that have been updated with the Oct 2019 WASDE: Corn prices fell 14 cents on the WASDE report last week, but then rebounded on the news of a China trade agreement. As I noted, the grains (soy and corn) trade in sympathy on many days. So I would say even though the China news is possibly ‘good’ that it is good for soy beans perhaps, but over the long haul not so much for Corn. This is because China buys a very high percentage of the USA’s soybeans, but not nearly so much of the USA’s Corn. My short 420-CALLS on the DEC19 contract expire in only 38 days. The cold weather and snows could drive Corn prices up some more.
(Above) Gold FEB2020 1900-strike CALL expires on 28 Jan 2020 in 105 days out. Since adding a short PUT to this class FEB20 would require little or no margin, the 1300-strike PUT FEB20 could be an interesting add to this short CALL. The Gold FEB 2020 PUT class is in the matrix below:
And this chart (below) of Crude Oil is from last week, although Crude is trading almost the same at 53.44 today:
Summary of my current positions as of TUESDAY- 15 OCT 2019:
FYI: You may click the gold-colored Trade Origination button to see the original post on the date the trade was placed.
Crude Oil FEB20 short strangle, the 80 CALL and 35 PUT
Short DEC19 short 420-strike CALL
Short the FEB20 1900-strike CALL for 1.9 ($190).
I’m keeping an eye on those FEB20 Gold PUTS. That is all today. Have a great week. – Don
Don A. Singletary Trial Subscribers: Subscribe today and don’t miss an issue. Thank you.
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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.
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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: 15 OCT 2019 TUESDAY
NOTE: You will find a summary of my current positions in the post below (just scroll down to see it):
There’s not a lot of change in the new week. Gold prices down again today as the stock markets ride the highs on the tail of trade talks. When the Dow breaks down next, gold prices will continue to waffle and prices should remain far below my FEB20 $1900-strike.
The USDA World Supply-Demand Projections were posted here in the most recent comments. Here are few of the charts that have been updated with the Oct 2019 WASDE: Corn prices fell 14 cents on the WASDE report last week, but then rebounded on the news of a China trade agreement. As I noted, the grains (soy and corn) trade in sympathy on many days. So I would say even though the China news is possibly ‘good’ that it is good for soy beans perhaps, but over the long haul not so much for Corn. This is because China buys a very high percentage of the USA’s soybeans, but not nearly so much of the USA’s Corn. My short 420-CALLS on the DEC19 contract expire in only 38 days. The cold weather and snows could drive Corn prices up some more.
source free chart at CME website: https://www.cmegroup.com/trading/agricultural/corn-reports.html
source: Kansas State Univ
(Above) Gold FEB2020 1900-strike CALL expires on 28 Jan 2020 in 105 days out. Since adding a short PUT to this class FEB20 would require little or no margin, the 1300-strike PUT FEB20 could be an interesting add to this short CALL. The Gold FEB 2020 PUT class is in the matrix below:
And this chart (below) of Crude Oil is from last week, although Crude is trading almost the same at 53.44 today:
Summary of my current positions as of TUESDAY- 15 OCT 2019:
FYI: You may click the gold-colored Trade Origination button to see the original post on the date the trade was placed.
Crude Oil FEB20 short strangle, the 80 CALL and 35 PUT
Short DEC19 short 420-strike CALL
Short the FEB20 1900-strike CALL for 1.9 ($190).
I’m keeping an eye on those FEB20 Gold PUTS. That is all today. Have a great week. – Don
Don A. Singletary
Trial Subscribers: Subscribe today and don’t miss an issue. Thank you.
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.
***************
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.