Category Archives: Commodities

Short Strangle – Gold Futures


SELL -5 STRANGLE /GCG5 1/100 JAN 15 /OGF5 1360/1040 CALL/PUT @4.40 LMT Credit – max profit (including commissions) = $2.162 Days to expiration = 37 Initial margin = $3,441 ROC (max profit) =~ 63% Look to take off trade at approximately … Continue reading

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Bullish positions in UNG (US NAT GAS Fund ETF)


Underlying chart … A few different approaches to initiating a bullish position.  Each one has it’s nuances in terms of capital required, P&L. – A call debit spread, financed by the sale of cash secured puts. – A synthetic covered call … Continue reading

Posted in Bull Call Spread, Commodities, Covered Write, Diagonal, Natural Gas, Options, Short Put, UNG | Leave a comment

Short Strangle – Light Sweet Crude Oil Futures


SELL -3 STRANGLE /CLQ4 1/1000 AUG 14 /LOQ4 115/92 CALL/PUT @.27 Days to exp. = 51ROC (max. profit) = 810/1980 =~ 40.9% The idea would be to take off the spread around 50% of max. profit.  Hence the actual ROC would … Continue reading

Posted in /CL, Commodities, Futures, Oil, Options, Short Strangle | Leave a comment

GLD Calendar


GLD IV is at the lower end of it’s range.  Looking for an increase in IV. BUY +10 CALENDAR GLD 100 JUL 14/JUN 14 124 PUT @.77 LMT

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Short Put – Light Sweet Crude Oil Futures


SOLD -1 /CLN4 1/1000 JUL 14 /LON4 93 PUT @.48 Days to exp. = 55 POP = 88.9% Max. profit = $480 (exc. commissions) Buying power effect = $991 ROC = 480/991 =~ 48%

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GDXJ (Market Vectors Junior Gold Miners ETF) Short Strangle


GDXJ Implied Volatility @ upper end of range.  Looking to sell premium. Note: Price down over 16% in the last 2 weeks. SELL -5 STRANGLE GDXJ 100 MAY 14 44/30 CALL/PUT @1.05 LMT  (# of contracts to be tailored to match … Continue reading

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SLV – Short Naked Put


Precious metals have been hammered pretty bad over the past 9 months or so as evidenced by the chart below. There is certainly an argument to be made about not catching a falling knife.  However, I see some support coming … Continue reading

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Silver – Looking for a bounce


Click here to view the chart. – Approaching an area of demand. – Confluence with the 50% Fib retracement of the AB move up – Price also approaching the 200 SMA Observe price action (candlestick formations etc.) once price reaches the level.

Posted in Commodities, Fibonacci, Misc. Setups, Silver, Support (Demand) - Resistance (Supply) | Leave a comment

JJS – Looking for a bounce


Click here to view the chart. The “Softs” (such as coffee, cotton, sugar, orange juice etc.) have been beaten down significantly over the past 18 months or so.  Expecting a move up in this sector in the near to medium term.  Looking to play this via … Continue reading

Posted in Divergence, Fibonacci, JJS, Misc. Setups, Softs, Support (Demand) - Resistance (Supply) | Leave a comment

GLD – Approaching Demand Zone on Daily Timeframe (Looking for a bounce)


Click here to view the chart. – GLD approaching a demand zone on a daily chart (support) – Area also confluences with the 200 SMA & the 50% Fib Retracement from the last significant move up (AB). Would look for … Continue reading

Posted in Commodities, ETF, Fibonacci, Gold, Misc. Setups, Support (Demand) - Resistance (Supply) | Leave a comment