Week 822 Gold, Option Write/Hedge (GOWH) Position & Performance Update

Sections in this report
1) Monthly and annual performance & spreadsheet weeks 1 through 820 offset positions
2) Current position week 822
3) Offset positions week 821
4) 2 Jan. 2007 through 30 Sep. 2022 weekly/annual performance on offset positions
5) Basics of how this program trades
6) What I like about this program
7) Video walking you through every trade for 2021
8) About automated trading accounts (ATAs)

1) Gold-Option-Write-Hedge-trade-by-trade-spreadsheet-weeks-1-through-822

2) Gold Option Write Hedge (GOWH) current position week 822

We wrote no calls this week collected premiums to low
Week 806 & 814 delivered gold, long 2 contracts average price $1,825.00

We added to this position 16 September (week 820) buying one October gold at $1,665
We’re now long a total of three December 2022 contracts average price $1,779.67
Bought three, week 1 $1,650 puts to hedge risk$1.70 per ounce.
Margin Requirement = current market, $1,641.30 – the put strike, $1,600.00 = $41.30
Total margin requirement $41.30 per ounce X 300 ounces = $12,390
Net premium collected week 821 on all positions, $4.50 per ounce.

Should next Friday’s settlement be below $1,600 we’ll add to our long futures position.

3) Offset positions week 821

Sold three week 5 $1,675 calls against our three long futures positions +$7.40 per ounce
Our three week 5 $1,675 calls expired worthless +7.40 per ounce
Week 806 & 814 delivered gold, long 2 contracts average price $1,825.00

We added to this position 16 September (week 820) buying one October gold at $1,665
We’re now long a total of three December 2022 contracts average price $1,779.67
October Gold settled at $1662.40 open trade equity – 109.05 per ounce

Bought three, week 5 $1,600 puts to hedge risk$2.90 per ounce
.Our three week 5 $1,600 puts expired worthless -$2.90 per ounce

Net premium collected week 821 on per position, $4.50 per ounce.
Should next Friday’s settlement be below $1,600 we’ll add to our long futures position.
Unable on adding to this position week 821
Net on offset positions week 821 net of all bid/ask spreads and fees $1,116.00

4) Gold-Option-Write-Hedge-trade-by-trade-spreadsheet-weeks-1-through-822
Performance on liquidated positions

Risk Disclosure

5) Basics of how this program trades

From neutral we write a slightly out of the money put option weekly collecting time premium, using a percentage of the collected premium buy a deeper out of the money put to define risk, (put credit spread) this procedure is repeated until we’re delivered a long futures position at a lower price.

Once delivered a long position we write a slightly out of the money call weekly collecting time premium, using a percentage of the call premium collected we buy an out of the money put to define risk, (collar) this procedure is repeated until the long futures position is called away at a higher price.

6) What I like about this program

    • It collects weekly option income
    • Risk is objectively defined on every trade
    • You get paid to buy gold lower (put write entry), again to sell it higher (call write offset)
    • Total weeks 821, (741 up weeks, 80 down weeks on offset positions)
    • Trading methodology is fully disclosed enabling performance verification.
    • Very easy track, it trades once a week on Friday’s settlement
    • Biggest downfall is weathering large open trade losses on the underlying futures positions.

7) Quotes & Charts

Futures Quotes 
Option Quotes
Futures Quotes
Daily Chart
Weekly Chart
Monthly Chart
  • 7) Video walking you through every trade for 2021
8) About Automated Trading Accounts (ATA’s)
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If you have any questions contact me.

Peter Knight Advisor
Direct VI Phone 24/7 +340 244 4310
Skype: Peter-Knight-Advisor
Message me
Peter_Knight@peterknightadvisor.com

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Asset Investment Management

Family Office, Advisors