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Opening

Selling a New /ES Strangle

I am selling a new /ES strangle to take advantage of the volatility uptick. This one is more centered than the last one since the market has pulled back. Sold /ES Mar -3180P/-3310 C for a credit of 98.00.
  • January 27, 2020·
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Buying /NG Below $2.00.

Going back to the well to buy natural gas on its plummet below $2.00. Is natural gas going out of business? It’s a commodity so the answer is no. I will hold onto it until it is profitable. Bought /NG Feb for 1.956.
  • January 19, 2020·
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Another Kick at the Silver Can

I am going to have another kick at the silver can by buying it here. Its price has dropped back from when I sold it in December. I will sell it on a quick pop or keep it for a longer grind (hopefully up) into February/March. We shall see. Bought…
  • January 14, 2020·
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Selling a Strangle in /ES Futures

The uptick in volatility is providing an opportunity to sell a strangle in /ES. My portfolio theta has been very low so this trade will help on that front. I am skewing the strangle to the downside as I want to keep the portfolio delta negative. Sold /ES Feb -3090…
  • January 7, 2020·
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Natural Gas Again

How low will the price of natural gas go? No one knows, but I am looking for a bounce with this trade. Catching a fall knife perhaps, but it seems oversold. Bought /NG Feb for 2.129.
  • January 3, 2020·
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Buying Natural Gas

Natural gas has been shellacked. I am already long by shorting puts, but this recent drop demands more action. Buying futures outright. Making a mental note that I won’t be adding to this position as it is already a large one in the portfolio. Bought /NG Feb for 2.214.
  • December 9, 2019·
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Buying Silver

What is good for gold should be better for silver. So I am adding to my silver positions by buying the silver future. It is my intention to sell a call against the future at some higher silver price as volatility typically increases as precious metals prices rise. Bought /SI…
  • December 3, 2019·
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Buying into Trilogy Metals (TMQ) Again

Trilogy Metals (TMQ) has retreated from where I last sold it at $2.01 USD. I am jumping in again as all of the original reasons for owning it are still valid including the expected positive decision regarding the access road and the likely formation of a JV with South 32.…
  • November 20, 2019·
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Opening a NOB Spread

I am going to try this Notes over Bonds trade again. Last time I took it off for a scratch. Hoping for a quick move in my direction this time around. Sold /ZB Dec 159′ 18 and bought 2 x /ZN Dec 129′ 18.
  • November 19, 2019·
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Selling APA Strangle

Apache Corporation options have a high implied volatility rank so I am selling a strangle with a bit more room on the upside to take advantage of any future volatility decline. Sold APA Dec 22.5P/27.5C for a credit of 1.62.
  • November 15, 2019·
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The Future of Oyu Tolgoi

There is quite a dance underway at the Oyu Tolgoi complex with Turquoise Hill (TRQ), Rio Tinto (RIO), Entree Resources (ETG), the Mongolian partner and other government authorities all attending. Are the government interventions part of a negotiating strategy? How about the project re-engineering, delays and additional costs? Logic would have it…
  • November 13, 2019·
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Buying Fireweed Zinc (FWZ)

I am buying another junior resource company to add to my list of Speculations. I am already an owner of Fireweed Zinc (FWZ), but I am buying another tranche and will consider it an opening position in keeping with the formalities of this blog. This company owns a large and…
  • October 31, 2019·
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Going Long US Steel (X)

You could call this an earnings trade as US Steel will release earnings after the close, but there is more to it. This low priced stock has been bouncing along at the bottom for a while and it has a decent volatility component to its options. It is the kind…
  • October 31, 2019·
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Selling Bond Straddle

Even though /ZB volatility is not extreme it is still likely to decrease after the Fed meeting so I am selling a straddle to take advantage of a possible decrease. Sold /ZB Nov 158′ 16 P and C for 2′ 36/64 credit.
  • October 30, 2019·
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Aussie-Canadian Pairs Trade

The spread between the Canadian dollar and the Australian dollar is quite large. Playing for a narrowing of the spread by buying /6A and selling /6C. Trying to stay engaged here while volatility is so low. Bought in Dec /6A for 0.685 and sold /6C for 0.76620.
  • October 28, 2019·
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Selling a Wheat Strangle

/ZW has decent implied volatility so I am selling a strangle to collect more theta while waiting for a possible decrease in volatility. Sold /ZW Dec 495P/545C strangle for a credit of 11.375.
  • October 28, 2019·
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Going Long Crude Oil

Crude oil is down about 1.25% before the open so I am selling a longer dated put for a decent credit. I can use the theta and positive delta. Sold /CL Dec 53.5 Put for 2.60 credit.
  • October 23, 2019·
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Opening a NOB Spread

This is a classic spread between the 30 year bonds and 10 year notes known as the NOB spread (Notes over Bonds). Selling the 30 year bonds and buying twice as many 10 year notes to take advantage of a small move in the yield curve. Sold /ZB Dec 159′…
  • October 22, 2019·
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Going Long Natural Gas

Natural Gas futures sold off just prior to the market opening. Looking for a quick bounce. I thought about selling the put into a later time period, but the additional credit wasn’t worth it. Sold /NG Nov 2.350 Put for 0.121 credit.
  • October 21, 2019·
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Nexgen (NXE)

It is my belief that nuclear energy can be part of the climate change solution while mitigating an impending energy crisis. There is little doubt that reactors are being built and that more uranium will be needed. So why aren’t uranium juniors in demand? There is too much uranium supply. Even…
  • October 18, 2019·
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Trilogy Metals (TMQ)

I prefer trading capital efficient options including options on futures over stocks in higher volatility environments. Sadly, the VIX has been declining and many of the opportunities to strategically sell options are waning. Combining this appraisal with seasonal tides that ofttimes support junior resource companies, I am interested in adding…
  • October 17, 2019·
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Going Long Silver

Underlyings with decent volatility are becoming more difficult to find. Silver’s vol is not bad and the price has pulled back. So I am selling puts in silver. Sold /SI Nov 17.35 Put for .466 credit.
  • October 16, 2019·
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