Week 838 Gold Option Write/Hedge (GOWH) Position & Performance Update

Sections in this report
1) Monthly, annual performance spreadsheet for weeks 1 through 837 offset positions
2) Current position week 838
3) Offset positions week 837
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 838

2) Gold Option Write Hedge (GOWH) current position week 838

Current chart (Feb 2023 delivery
Currently neutral, trying to buy Feb 23 gold using a put write entry
Wrote one, week 4, 1945 put collecting $21.80 X 100 ounces = $2,180
Purchased one, week 4, 1900 put to define maximum risk = -3.90 X 100 ounces = -$390.00
Total premium collected net of all bid/ask spreads and fees = $1,712.00
Margin requirement & maximum risk
Put strike write 1945 – put purchase 1900 = $45.00 per ounce X 100 = $4,500
$4,500.00 market risk – net collected premium $1.712 = margin & max risk of $2,488.00
Barchart options quotes – CME options quotes

3) Net gain or loss on offset positions week 837

Market settlment price week 837 = 1,928.40 (February 2023 delivery)
Currently neutral, trying to buy Feb 23 gold using a put write entry
Wrote one, week 3, 1925 put collecting $17.40 X 100 ounces = $1,740.00
This option expired worthless net credit = $1,701.00
Purchased one, week 3, 1890 put to define maximum risk = -6.10 X 100 ounces = -$610.00
Net loss =-$649.00
Total premium collected net of all bid/ask spreads and fees = $1,052.00
Barchart options quotes – CME options quotes

4) Gold Option Write Hedge trade-by-trade spreadsheet weeks 1 through 838
__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