Week 836 Gold Option Write/Hedge (GOWH) Position & Performance Update

Sections in this report
1) Monthly, annual performance spreadsheet for weeks 1 through 835 offset positions
2) Current position week 836
3) Offset positions week 835
4) 2007-2023 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 836

2) Gold Option Write Hedge (GOWH) current position week 835

Market settlment price week 835 = $1,869.70 (February 2023 delivery)
Currently neutral, trying to buy Feb 23 gold using a put write entry
Wrote one, week 2, 1900 put collecting $36.30 X 100 ounces = $3,630.00
Purchased one, week 2, 1840 put to define maximum risk = -5.80 X 100 ounces = -$580.00
Total premium collected net of all bid/ask spreads and fees = $2,972.00
Margin requirement & maximum risk
Put strike write 1900 – put purchase 1840 = $60.00 per ounce X 100 = $6,000
$6000.00 market risk – collected premium $2,972.00 = margin & max risk of $3,038.00

3) Net gain or loss on offset positions week 834

Market settlment price week 834 = $1,826.20 (February 2023 delivery)
Long 1 Feb gold at $1,835 open trade equity – 8,80 X 100 ounces = -$880.00
Wrote one week 1, 1850 call collecting $8.30 X 100 ounces = $830.00
Our gold long at $1,835 was called away $1,850 + 15.00 per oune x 100 = $1.500
Purchased one, week 1, 1795 put to define max risk = -$3.80 X 100 ounces = -$380.00
This put expired worthless -$380
Premium paid or collected net of all bid/ask spreads fees = +372.00
Profit on the delivered position = +$1,500
Net on all offset positions for the week 834 = +$1,872

4) Gold Option Write Hedge trade-by-trade spreadsheet weeks 1 through 836
__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 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