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Opening

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…
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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…
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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.
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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.
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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.
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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.
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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′…
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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.
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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…
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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…
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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.
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Selling Crude Oil Strangle

My portfolio theta is a little light so I sold a slightly delta positive wide crude oil strangle. The crude oil price is near the bottom of its recent range so this trade will allow me to participate in a bounce as well as take advantage of time decay and…
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