Closing

I am closing this defined risk bullish trade in Amazon. AMZN’s share price rose on a positive earnings release enabling the closure of this position for a $2,280 profit per 10 lot. Bought AMZN Aug 28 -2900P+2890P for a debit of $2.77.

I am closing the Notes Over Bonds spread. The spread reverted resulting in a quick profit. Bought /ZB Sep 179′ 20 and sold 2 x /ZN Sep 139′ 10.

I am taking off the corn strangle after two weeks for a profit of $200 per contract. The price of corn hung out at the lower boundary of this strangle for most of the trade, but enough time passed and volatility dropped a tad to make it a winner. Bought…

I am closing the EURN puts to lock in about half of the credit collected by selling and rolling these puts during the past couple of months. I am still bullish on tankers and have plenty of exposure remaining. Since the volatility of tanker options has been dropping, it makes…

Silver had a decent rise in price so I am buying back the silver put. I still like silver and would consider selling a put again with a rise in volatility and/or drop in the price of silver. Bought /SI Aug 18.65P for a 0.672 debit.

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…

Wheat prices jumped almost immediately so I am taking profits of $300 per contract in one day. Bought /ZW Aug 490P for a 7.875 debit.

A small rebound in the price of natural gas is providing an opportunity to take a quick profit of $200 per contract. My rule of thumb is to take the trade off if it shows a quick and reasonable profit. Bought /NG Jul 1.5 P for a debit of 0.086.

The iron condor in silver closed out for a loss of $575 per contract. Iron condors are defined risk trades. Their advantages include knowing the maximum possible loss at order entry and requiring less buying power reduction than undefined risk trades. Many traders like those attributes, but there are drawbacks.…

There was a significant rally and the NOB spread narrowed leading to a $312 profit per spread in one day. There were opportunities to take the trade off at better prices, but I was a little early. Bought /ZB Sep 177′ 00 and sold 2 x /ZN Sep 138′ 215…

I am selling the gold calls for a quick profit. Gold rebounded slightly during the next trading session so I am taking this opportunity to close out the trade for a $240 profit on each call. My portfolio delta is negative enough that it will benefit in a general market…

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…

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…

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.

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…

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.

The price of gold softened a little during the trading session resulting in the vertical spread being worth less. I bought it back to realize a $30 profit per spread in one day. /GC Apr 27 +1900C-1925C for $1.30 debit

The markets rallied hard today, but I do not think that this crisis is over. I want to raise cash. MGM seemed like a good choice for liquidation based on its particularly massive rally. Sold MGM 100 for 11.47 and bought MGM Apr -17 Put for 5.60 debit for a…

Third time’s a charm. The first two NOB spread trades were taken off as scratches, but this one was a winner with a profit of $260 per spread. The spread between the 30 year bonds and the 10 year notes came in nicely with this market relief rally. Bought /ZB…

I am closing the bond call for a small profit. Will reload again on another spike in bonds. Bought /ZB Mar 27 167 Call for a credit of 1’34.