Week 840 Gold Option Write/Hedge (GOWH) Position & Performance Update

Sections in this report
1) Monthly, annual performance spreadsheet for weeks 1 through 839 offset positions
2) Current position week 840
3) Offset positions week 839
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 840

2) Gold Option Write Hedge (GOWH) current position week 840

Current chart (April 2023 delivery
Currently long 1 April 2023 gold at $1,945.60, settle $1,862.90 open trade equity -$8,270.00
Trying to add to this position writing a week 2, 1865 put collecting $9.80 X 100 = $980.00
Purchased 2 week 2, 1835 puts paying out $2.80 X $200 =$560.00 to define maximum risk
Total premium collected net of all bid/ask spreads and fees = $303.00
Reward does not justify risk writing the week 2 1885 call standing aside on the call write
Maximum risk if gold drops immediatley to zero = $14,060.00
First long $1945.60 – $1,835.00 = $110.60 = $11,060.00
Put write 1865.00 – $1,835.00 = $30.00 = $3,000.00
Barchart options quotes – CME options quotes

3) Net gain or loss on offset positions week 839

Market settlment price April 2023 delivery week 839 = $1,862.90
Long 1 April gold $1,945.60, open trade equity = $82.70 X100 = -$8,270.00
Wrote one, week 1, 1955 call collecting $12.30 X 100 ounces = $1,230.00
This call expired worthless crediting us $1,230.00
Purchased one, week 1, 1915 put to define maximum risk = -5.60 X 100 ounces = -$560.00
This position was offset at $55.00 X 100 = $5,500
Total premium collected net of all bid/ask spreads and fees = $592
Gain on the week net of all bid/ask spreads and fees = +$6,014.00
Barchart options quotes– CME options quotes

4) Gold Option Write Hedge trade-by-trade spreadsheet weeks 1 through 840
__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