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Closing the Crude Strangle

The rising price of crude made this trade a loser from the start. I am pleased to be able to scratch it. Commodity prices have been rising as the value of the US dollar has been dropping. Being able to break even when the price of crude shot up above…
  • July 9, 2020·
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Going Long Silver

I want to add to my precious metals exposure. I have plenty of gold exposure already so it’s time to add more silver. Finding quality exposure to equities is more difficult for silver compared to gold. There are few solid silver stocks on the market. So I am going to…
  • July 7, 2020·
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Selling a Wheat Put

Wheat has a high volatility component to its options. I am selling a put to take advantage of that volatility with expectations that the price of Wheat will not decline drastically from here. Commodities are finding a bid with pressure on the US dollar which is a great backdrop for…
  • July 7, 2020·
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Selling a Corn Strangle

Corn’s volatility is providing an opportunity to sell rich options. I am selling strikes that are equidistant from being at the money so there is no directional bet. I just need time to pass and/or volatility to decrease to make some money on this trade (and the corn price not…
  • July 1, 2020·
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Taking a Long Position on Natural Gas

Natural gas prices have been decimated. There are plenty of narratives to explain it including seasonal weakness, greater supply due to additional oil production as crude prices rise, etc. None of that matters to me. I am betting on a mean reversion and I will sell options to express my…
  • June 25, 2020·
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Going Defensive on the Crude Trade

Crude prices remain strong so I am taking a defensive posture by rolling the short call to August as well as selling an August put. I am moving up the strike price on the call to increase the probability of making money on this trade. Undefined risk trades such as…
  • June 23, 2020·
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Buying Back the Crude Put

Crude has run up past $40 now so I am buying back the put for an $0.80 debit. It will be interesting trying to make money on this position if crude holds above $40. The new position is Sold /CL Jul 35C for a $4.64 credit.
  • June 19, 2020·
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Opening a NOB Spread

This Notes Over Bonds spread has widened out so I am going to fade it in anticipation of a relief rally. Let’s see how long this takes to work out. Sold /ZB Sep 177′ 28 and bought 2 x /ZN Sep 138′ 305.
  • June 11, 2020·
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Selling a Crude Oil Strangle

I am selling a neutral strangle in crude oil. It is a decent accompanying position to my short crude futures position. My plan is to take off the short futures on further declines in crude, but leave on the strangle and manage as necessary. Sold /CL Jul 33P/37C strangle for…
  • June 11, 2020·
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Closing Out Trilogy Metals

I am closing my final position in Trilogy Metals (TMQ) for a scratch. I believe it is too early to get excited about an economic recovery which would be required to sustain increasing base metals prices. As long as Trilogy is able to secure its access road, I anticipate that this stock…
  • June 11, 2020·
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Jumping into Gold Again

I do not usually buy options, but I am making an exception to buy out of the money calls on gold. The value of these options will continue to decline and do so rapidly unless the gold price spikes up again in the near term so this could become a…
  • June 5, 2020·
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The Fourth Turning

This is our era of destruction. 40 million unemployed in the U.S. and climbing. 100,000 Americans dead by COVID-19 and rising. Citizens caught between the virus hoaxers and the zero risk medical zealots. Reopen or lockdown? Inept and corrupt politicians. Politically-biased media. Entrenched racism, poverty and serfdom. A hollowed out…
  • May 29, 2020·
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Going Long Gold

I want to increase my exposure to gold as its price has dropped recently. This will be a two part trade. I will sell a /GC put to collect premium and then use this premium to buy an out of the money /GC call. It’s a feel good trade in…
  • May 27, 2020·
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