Home - The Rational Speculator

Trade ·
Closing ·

Closing Two Part Gold Trade for $1,130 Total Profit Per Contract in Two Days

Gold went in the right direction almost immediately. This trade might become a much bigger winner, but I want to harvest some profits now with the intent to go back in to a similar trade if gold pulls back again. Bought /GC Jul 1675P for a debit of 20.10. Sold…

May 29, 2020·

Commentary ·

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·

Trade ·
Opening ·

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·

Rolling Euronav Puts to July

I am rolling the Euronav (EURN) puts to July to collect an extra $0.25 of premium. Sold EURN Jul 10 Put for a total credit of 2.05.

May 27, 2020·

Trade ·
Closing ·

Closing Gold Strangle for $170 Profit Per Contract in One Day

I am buying back the gold strangle to make $170 profit per contract. Gold volatility came in a little providing an opportunity to take 10 percent of the maximum profit of the trade in one day. I’d do that everyday given the chance. /GC Jun -1620P-1915C for a debit of…

May 19, 2020·

Trade ·
Opening ·

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.

May 18, 2020·

Speculation ·
Decreasing ·

Selling Trilogy Metals (TMQ) for a 9% Profit

I am selling the second tranche of Trilogy Metals (TMQ) for a 9% profit in order to raise additional cash. The share price may continue to climb as a result of an upcoming conference and news regarding the road milestone due at the end of the month. I might sell Tranche #1…

May 18, 2020·

Trade ·
Opening ·

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.

May 14, 2020·

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…

May 12, 2020·

Trade ·
Closing ·

Closing the Natural Gas Strangle

I am closing the natural gas strangle for a $60 profit per contract in one day as the price of natural gas pulled back. I’ll take the quick win and move on. /NG Jun -1.8P-2.2C for a debit of 0.255.

May 7, 2020·

Trade ·
Opening ·

Selling a Strangle in Natural Gas

My portfolio theta is low so I am looking for options with decent volatility to sell. Natural gas is fairly rich so I am selling a strangle in the June’s. /NG Jun -1.8P-2.2C for a credit of 0.261.

May 6, 2020·

Selling an Iron Condor in Silver

Silver volatility is fairly decent so I am going to sell an iron condor to collect premium. /SI Jun 14.15P-14.45P-15.55C+15.85C for a credit of 0.185.

May 6, 2020·

Speculation ·
Closing ·

Closing Alexco (AXU)

I am closing another tranche of Alexco Resource (AXU) (tranche #1) for a scratch. I am building my cash position for other opportunities coming in the market. Sold tranche #1 at $1.62 (USD).

May 4, 2020·

Speculation ·
Closing ·

Closing Nexgen (NXE)

I am selling the remaining tranche of Nexgen Energy for a scratch. Speculating in Nexgen has worked well overall, but I am closing it out to raise cash. Sold tranche #1 at $1.35 (USD).

May 4, 2020·

Speculation ·
Decreasing ·

Selling Trilogy Metals (TMQ) for an 18% Profit

I am selling the third tranche of Trilogy Metals (TMQ) for an 18% profit. I am interested in raising cash as there seems to be a major disconnect between Wall Street asset prices and the main street economy. Sold tranche #3 at $1.87 (USD).

April 29, 2020·

Speculation ·
Decreasing ·

Selling Nexgen (NXE) for a 49% Profit

I am selling the second tranche of Nexgen Energy for a 49% profit. Uranium stocks are catching a bid, but I am more interested in raising cash now in order to be able to take advantage of the next market downturn. Sold tranche #2 at $1.36 (USD).

April 24, 2020·

Buying Scorpio Tankers (STNG)

I am buying a tanker stock, Scorpio Tankers (STNG), as a bet that charter rates for these ships will continue to climb as the surplus of crude and its distillates continues to grow. This company has plenty of debt and I am unsure about its management so the wiser thing…

April 22, 2020·

Commentary ·

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…

April 21, 2020·

Trade ·
Closing ·

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…

April 16, 2020·

Commentary ·

Respected American Capitalist’s View on Wall Street’s Most Recent Government Bailout

Tom Sosnoff is a serial entrepreneur, trader and a true capitalist. Here’s his take on recent developments in corporate America. “In trying to find some topics that I think we can all agree on, here are two things that I’m having trouble processing. First, why is it so important to…

April 15, 2020·

Commentary ·

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…

April 15, 2020·

Speculation ·
Decreasing ·

Selling Trilogy Metals (TMQ) for 40% Profit in One Month

I am selling the fourth tranche of Trilogy Metals (TMQ) for a 40% profit made in one month. I still have three other tranches so it makes sense to take some money off the table after a quick run up. Sold tranche #4 at $1.61 (USD).

April 14, 2020·

Trade ·
Closing ·

Closing the Vertical Put Spread in Gold for $230 Profit in One Day

I am buying back the vertical put spread in gold as the price of gold took off almost immediately after I put this trade on. /GC May 26 -1635P+1660P for $8.20 debit for $230 profit per spread.

April 9, 2020·

Trade ·
Opening ·

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…

April 8, 2020·

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