Week 841 Gold Option Write/Hedge (GOWH) Position & Performance Update

Sections in this report
1) Monthly, annual performance spreadsheet for weeks 1 through 840 offset positions
2) Current position week 841
3) Offset positions week 840
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
–
1) Gold Option Write Hedge trade-by-trade spreadsheet weeks 1 through 841

2) Gold Option Write Hedge (GOWH) current position week 841

Current chart (April 2023 delivery
Wrote 1 week 3, 1825 call to generate premium on our $1945 long $7.30 X 100 = $730.00
Currently long 1 April 2023 gold at $1,945.60, settle $1,874.50 open trade equity -$7,110
Trying to add to this position writing a week 3, 1845 put collecting $6.50 X 100 = $650.00
Purchased 2 week 3, 1825 puts paying out $3.00 X $200 = $600.00 to define max risk
Total premium collected net of all bid/ask spreads and fees = $663.00
Maximum risk if gold drops immediately to zero = -$13,397.00
$663.00 net premium collected
First long $1945.60 – $1,825.00 = $120.60 = $12,060.00
Put write 1845.00 – put purchase $1,825.00 = $20.00 = $2,000.00
Barchart options quotes – CME options quotes

3) Net gain or loss on offset positions week 840

Market settlment price April 2023 delivery week 840 = $1,862.90
Currently long 1 April 2023 gold at $1,945.60, settle $1,862.90 open trade equity -$6,910
Trying to add to this position writing a week 2, 1865 put collecting $9.80 X 100 = $980.00
This option expired worthless +$980.00
Purchased 2 week 2, 1835 puts paying out $2.80 X $200 =$560.00 to define maximum risk
These options expired worthless -$560.00
Total premium collected net of all bid/ask spreads and fees = $303.00
Barchart options quotes – CME options quotes

4) Gold Option Write Hedge trade-by-trade spreadsheet weeks 1 through 841
__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