Week 829 Gold, Option Write/Hedge (GOWH) Position & Performance Update

Sections in this report
1) Monthly, annual performance spreadsheet for weeks 1 through 828 offset positions
2) Current position week 829
3) Offset positions week 828
4) 2007-2022 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)
* Previous weekly updates are linked here
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1) Gold Option Write Hedge trade-by-trade spreadsheet weeks 1 through 829

2) Gold Option Write Hedge (GOWH) current position week 829

Market price 18 Novermber 2022 = $1,756.40
Sold three $1,790 week 4 calls at $4.10 total collected $1,230.00
Long three December 2022 contracts average price $1,779.67
Bought three, $1,720 week 4 puts to hedge risk –$1.10, total paid -$330.00
Bought four $1,700 week 4 puts -$0.50, total paid -$200.00
Margin requirement = current market $1,756.40, – put strike $1,720.00 = $36.40 per ounce
Total margin requirement & maximum risk $36.40 per ounce X 300 ounces = $10,920
Net collected/paid after all costs week 829 = +$309.90
Barchart options quotes – CME options quotes

3) Offset positions week 828

Market settlement 18 Novermber 2022 = $1,756.40
Sold two $1,800 week 3 calls at $4.65
Our $1,800 week 3 calls expired worthless +$4.65 X 200 = $9.30 +$930 per unit
Long three December 2022 contracts average price $1,779.67
Gold price $1,756.40, open trade equity -$23.27 per ounce X 300 = -$6,981.00 per unit
Bought three, $1,730 week 3 puts to hedge risk –$2.755 per ounce
Our 1730 .puts expired worthless –$2.755 per ounce X 300 = -$827.00 per unit
Bought five $1,685 week 3 puts -$0.30 per ounce,
Our $1,685 week 3 puts expired worthless -$0.30 X 500 = -$150 pre unit
Premium collected/paid net of all costs week 828 = –$242.00
Barchart options quotes – CME options quotes

4) Gold Option Write Hedge trade-by-trade spreadsheet weeks 1 through 829
__Performance on liquidated positions

Risk Disclosure

Gold Option Write Hedge is a hedge program for people who already own gold or want to own gold long-term and generate income against it while defining risk strategy on their underlying gold position. The performance represented is on realized hedge trade profit or loss (offset positions), the open trade equity on underlying position is disclosed in section 2 of this report.

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

- On the Majority of trades 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)
- Trading methodology is fully disclosed enabling performance verification.
- Very easy track, it trades once a week on Friday’ on or near the settlement
- Biggest downfall is weathering large open trade losses on the underlying futures positions.

7) Quotes & Charts