16 July 2019 TUESDAY newsletter new trades

Greetings: TUESDAY 16 JULY 2019: New Trades today

I sold the Crude Oil DEC19 $40-strike PUTs today for 0.18 ($180)
Since I am already short a DEC19 90 CALL, the additional net margin was $272
This 40P and 90C expire in 127 days on November 15, 2019.  The Prob OTM (probability it expires OTM) is about 94.73% (on the PUT that was sold today.)

I sold the Gold DEC19 $1250-strike PUTs today for  1.2 ($120)
Since I am already short a NOV19 $1800-strike CALL, the additional net margin was only $285.
The Prob. OTM for the $1250 PUT is 96%.  The DEC19 $1250PUT expires on November 25, 2019 in 132 days.
Comment: I looked at the NOV19 PUTs before deciding to sell this DEC19 PUT; I chose the DEC19 because the credit was much higher than the NOV19.  Even though the CALL is in the NOV19 class, the margin requirements still consider this a ‘short strangle.’

Here are the charts:


Summary of my Positions 16 July 2019:

  DEC19  Crude Oil short  90 CALL for .10 ($100)     

DEC19 Crude Oil short 40 PUT for 1.80 ($180)  new trade today (7/16/2019.)

Short  Gold NOV19 1800-strike CALL I sold for $110

Short Gold DEC19 $1250 PUT for 1.2 ($120)  new trade today (7/16/2019.)

Comments:  I am still shopping to sell a SEP19 Corn PUT but the Corn futures are still running lower this week.  At about Noon Eastern time today the SEP19 Corn trading: 433.30, -7.75.  Soybeans have similar price action this week, so I am aside for now to see what happens.  (for background on this comment, see yesterday’s Commentary 15 JUL 2019.)

These two short strangles are pretty wide (far OTM) – and Prob. OTM for all four strikes are well above 90%.  Even though they look very good right now, there is still plenty of risk so watch them carefully if you trade them.

Even though Corn is trading down so far this week; I’m looking for a new bottom/ price support so I can sell those SEP19 PUTs.   A one-line summary of Crude trading right now is: The bulls face news of a weakening global economy while the USA keeps pumping more and more oil, adding to stocks.

for illustration only

That is all for today.  Have a great week. – Don

Don A. Singletary

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