25 February 2020 TUESDAY newsletter /comments

Greetings:  25 FEB 2020  TUESDAY

The only trade I have out right now is continuing the short Crude Oil strangle  MAY20 that I placed back on 11th FEB. (see below “trade orgination” placard.  This short strangle 65C/37P was sold for $250.   I continue to hold it.  This morning the 65C is trading 0.05 and the 37P is at 0.15.

Current position Summary: 

I sold a MAY20 Crude Oil short strangle on 11th FEB. I sold the 65-strike CALL for 0.10 ($100) and I sold the 37-strike PUT for 0.15 ($150) for a total premium credit of $250.   You can see the details by clicking the TRADE ORIGINATION banner below:

Commentary:   I remain very hesitant to place any new positions this week.    The grains are weak due to slowing international trade.  If they take another hit, I will shop the JULY 2020 Corn PUTs, but with everything so tentative this about the future of the Corona virus.  I continue to stand aside.

I, nor anyone else can accurately predict what is next.  I don’t see any reason to elaborate here, as this is what all the news channels are doing all day long — and still the uncertainty is there.  Gold (obviously) remains very volatile and yet there is no way to gauge yet what/when prices could be over-done, so I remain aside.  

Selling commodity options is a risky and extremely highly leveraged strategy.  This is a time of ‘rare air’ for the strategy.  Few events can influence prices in so many markets as the virus threat does right now.  It is a time for caution and patience.  I will of course post immediately, if I see an opportunity within my risk tolerance. – Don


An Aside:  While the ‘selling commodity options’ strategy is very quiet, I have found opportunities with the Stock Index Futures this week.   I have mentioned my new YouTube channel on this type of futures trading,  the link is here if you want to explore the idea:  https://www.youtube.com/channel/UC3WzyRqTuFn2iBjBPu-D6HA/  or click/touch this channel icon:

Thank you and have a great week. – Don  11:45 AM Tuesday 25FEB2020

The book link is here, this link as the book description, etc.:




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