Commodity Options Report January 8, 2020

For the past week, I’ve been traveling with my wife and three young children while watching the action in the markets with great interest and pleasure.

In the past, my emotions would have been all over the place (along with P/L). We’ll call this the Equity-Emotional continuum.

But now, with the use of multiple positions and multiple strategies, the Equity-Emotional continuum remains stable and plans remain in tact during sharp changes in volatility.

I’ve had two executions and planning two more.

The first was the removal of the Gold call credit spread on the break above 1525 in the February futures contract. This was followed by target profit in the Put credit spread when Gold rallied above 1550.

In Crude Oil, one could have taken the lower profit target (anything above 50% of credit is valid). I did not do this as I like to wait for >70% most of the time. Congrats if you did!

My planned next trade is to sell a Call credit spread in July 2020 Crude Oil options expiration. I’m not sure about the strikes yet, but looking at the 70/80 call credit spread.

As for Gold, I’m planning to resell a half sized Put credit spread to re-enter the bullish trend. I’ll aim to get to full size on a 5-day low, but quickly cover that position on a 15-day low.