Week 817 Gold, Option Write/Hedge (GOWH) Position & Performance Update

Sections in this report
1) Annual performance & spreadsheet weeks 1 through 816
2) Current position week 816
3) Offset positions week 815
4) Basics of how this program trades
5) 2 January 2007 through 19 August 2022 weekly/annual performance on offset positions
6) What I like about this program
7) Video walking you through every trade for 2021
* Previous weeks are published on Barchart
* Set up with Barchart to track trades intra-day

1) Gold Option Write Hedge trade-by-trade spreadsheet weeks 1 through 817

2) Gold Option Write Hedge (GOWH) current position week 817

Sold 2 Week 1 1945 calls against our long futures position +$11.70 = +$1,170r per contract
Week 806 & 814 delivered gold, currently long 2 contracts average price $1,825
Settle 1740.60 per ounce, open trade equity -$84.40 per ounce -$8.440 per contract
Bought 2 week 1 puts to hedge risk paying $8.20 per ounce = -$820 per contract
Net premium collected week 817 =$3.50 per ounce =+350.00 per contract

3) Offset positions week 816

Sold 2 1760 week 4 calls against our long futures position +$9.00 = +$900 per contract
Expired worthless +$9.00 = +$900 per contract
Week 806 & 814 delivered gold, currently long 2 contracts average price $1,825
Bought 2 $1,730 week 4 puts to hedge risk paying $6.30 per ounce = -$630 per contract
Expired worthless -$6.30 per ounce = -$630 per contract
Net collected on offsets week 816, $5.40 per ounce = net after all costs $384 pe unit

4) 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.

5) Gold Option Write Hedge trade-by-trade spreadsheet weeks 1 through 817
Performance on liquidated positions

Risk Disclosure

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), paid again to sell it higher (call write offset)
- Total weeks 815, 735 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