25 July 2019 THURSDAY newsletter – new trade today

Greetings!  New Trade Today: Shorted the OCT19 Crude Oil 75C/40P strangle.

I opened a new short strangle today: Selling the OCT19 Crude Oil 40-strike PUT and the 75-strike CALL for a total of 0.12 ($120).  I got .07 for the 40P and 0.05 for the 75C.  This was my fill, but any combination that gets a 0.12 total will do.  I put a spread order in, not individual orders – as I often do. This way there is no limit on either side, just a limit for the total premium required for the trade.

Initial net Margin: $543
Prob. OTM: 97%
Expiration for OCT19 Crude Oil options: 54 days out on September 17, 2019

Here’s the chart: 

Summary of my Positions 25 July 2019:

  DEC19  Crude Oil short  80 CALL for .10 ($100)     

DEC19 Crude Oil short 40 PUT for 1.80 ($180)

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

Short Gold DEC19 $1250 PUT for 1.2 ($120)

And today’s trade of course: The Crude Oil OCT19 short strangle 75C/40P for 0.12.

Comment:  I felt with only 54 days until expiration the 75C/40P should stay out of range for the price of the underlying OCT2019 crude oil futures contract price.  My latest comments re: Crude Oil are in the 22nd July post on Monday of this week, see: https://www.timefarming.com/blog/22-july-201h/
That is all for today.   Thank you. – Don

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