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.:
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: 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.:
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.