Week 832 Gold Option Write/Hedge (GOWH) Position & Performance Update

Sections in this report
1) Monthly, annual performance spreadsheet for weeks 1 through 831 offset positions
2) Current position week 832
3) Offset positions week 831
4) 2007-2022 weekly/annual performance on offset
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 linked here
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1) Gold Option Write Hedge trade-by-trade spreadsheet weeks 1 through 832

2) Gold Option Write Hedge (GOWH) current position week 832

Market price = $1,810.70.00 (February 2023 delivery)
Currently neutral gold
Resting order to sell 1, week 3, 1785 put at $12.70 (filled 12 Dec) = +$1,270
Purchased 1, week 3, 1750 put = -2.70 X 100 ounces = -$270.00
Margin requirement & maxmimum risk = 1785 put write – 1750 put purchase
1785 – 1750 = $35 per ounce X 100 ounces (one contract) = $3,500
Net collected/paid after all costs week 832 = +$922.00
Barchart options quotes – CME options quotes

3) Offset positions week 831

Market price = $1,809.60.00 (February 2023 delivery)
Neutral gold
Resting order to sell 1, week 2, 1780 put at $10.00
Filled 6 Dec at +$10.00 = +$1,000
This put expired worthless +$1,000
Purchased 1, week 2, 1750 put = -1.70 X 100 ounces = -$170.00
This put expired worthless = -$170.00
Net collected/paid after all preimum paid and costs week 831 = +$752.00
Barchart options quotes – CME options quotes

4) Gold Option Write Hedge trade-by-trade spreadsheet weeks 1 through 832
__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