Week 813, Gold Option Write/Hedge (GOWH) Position & Performance Update

Sections
1) Current position
2) Week 1 through 812 performance summary data & trades spreadsheet
3) What I like about this program
4) How this program trades
5) 2 January 2007 through 29 July 2022 weekly and annual performance
6) Video walking you through every trade for 2021

1) Gold Option Write Hedge (GOWH) current position week 813

Trade 1 (existing position)
Sold 1 $1,795 week 1 call against our long collecting $5.50 per ounce = +$550 per contract
Week 806 delivered gold at $1865, current position long October 2022 $1865
Settle $1,762.90 open trade on the underlying futures position – 102.10 per ounce -$10, 210
Bought 1 $1,750 week 1 put paying $5.50 per ounce = -$550 per contract
Net collected on the week 813, $0.00 per ounce +$00.00 per contract

Trade 2 ( Resting order to add to our long position writing a put credit spread for entry)
Selling 1 $1,750 week 1 put
Bought 1 $1,710 week 1 put
Resting order at +$8.00

Objective, to collect $8.00 per ounce in time premium and add to our existing long position at $1750

2) Gold Option Write Hedge trade-by-trade spreadsheet weeks 1 through 813

2) 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 812, 730 up weeks, 81 down weeks, 1 breakeven (on liquidated positions)
- Trading methodology is fully disclosed enabling performance verification.
- Very easy track, it trades once a week on Friday’s settlement
- Message me with any questions.

3) Basics of how it 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.

4) Gold Option Write Hedge trade-by-trade spreadsheet weeks 1 through 813 (offset positions)

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.

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, 81 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.