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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…
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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…
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Selling a Gold Strangle

I am selling a wide gold strangle in June to take advantage of its decent volatility. I expect gold to go higher in the long run, but I want to take advantage of its volatility in the short term. /GC Jun -1620P-1915C for a credit of 17.00.
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Selling Tanker Puts

I am selling in the money puts in a tanker company called Euronav (EURN). Its options are fairly rich and I believe tanker stock prices will benefit from excellent earnings. Getting assigned would not be a poor outcome. Sold EURN Jun 10 Put for a credit of 1.80.
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Buying More Scorpio (STNG)

I am adding a second tranche of Scorpio Tankers (STNG) as it has pulled back significantly. Tanker stocks are volatile. Charter rates bounce around. Shares are sold for an infinite number of reasons. The important takeaway is that the fundamentals are strong. These companies are getting great rates for their ships…
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Capitalism in the Oil Patch

May crude prices went negative a few hours ago. The June WTI contract is $21 as I write this post. That difference is a tell of high storage costs as demand is way down while storage is reaching capacity. I am betting that tanker stocks will do well as more…
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Closing Out the Cameco Trade Experiment

I am pulling the plug on the Cameco trade idea mentioned by Rick Rule during a BNN interview. Cameco is still worth owning in my opinion, but it is a poor candidate for option selling. The options are insufficiently liquid meaning that large bid/ask spreads reduce the actual credits received. The volatility component…
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Causing Panic in Newfoundland

I keep an eye on the news in Newfoundland. It is my home province and I have many friends and family living there. A large Newfoundland shipping company, Oceanex, has created consternation by blaming the COVID-19 illness for its poor finances and is subsequently requesting federal subsidies if it is…
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Selling a Vertical Put Spread in Gold

I am selling a vertical put spread in gold. Volatility is decent and the long term prospects for gold are excellent. The maximum loss for each spread is $1,420. [$2,500 (1635-1660) – $1,080 (credit received) = $1,420] I would try rolling it for another credit into the next month if…
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