Sections in this report
1) Monthly and annual performance & spreadsheet weeks 1 through 822 offset positions
2) Current position week 823
3) Offset positions week 822
4) 2 Jan. 2007 through 7 October 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)
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1) Gold-Option-Write-Hedge-trade-by-trade-spreadsheet-weeks-1-through-823

2) Gold Option Write Hedge (GOWH) current position week 823
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We wrote the $1750.00 week 2 calls collecting $4.20 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
Settle $1,709.30 open trade equity on the underlying futures position -70.37 = -$21,111
Bought three, week 2 $1,650 puts to hedge risk –$2.50 per ounce.
Margin Requirement = current market, $1,700.50 – put strike $1,650.00 = $50.50 per ounce
Total margin requirement $50.50 per ounce X 300 ounces = $15.150.00
Net premium collected week 823 = $1.70 per ounce.
Should next Friday’s settlement be below $1,625 we’ll add to our long futures position.
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3) Offset positions 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
Settlement 7 October 2022 $1,700.50 Open trade equity = -79.17 per ounce.
Bought three, week 1 $1,620 puts to hedge risk –$1.70 per ounce.
Our week 1 $1,620 puts expired worthless -$1.70 pe rounce
Net premium paid week 822, -$1.70 per ounce
Net on all positions after premiums, spreads and fees on offset positions = -$627.00

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

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, 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.