Gold’s going up. USD looking like it will go down or take a small dip after a good run up in value. I might be wrong about where the market will go. But one thing is for certain. Commodities cannot go down to zero.
$JO is an ETF tracking the coffee market. It is near the low making a double bottom. I decided to sell to open two short puts at $36 strike.
Now that I am sitting here looking at the trade again. What I should have done was sell one put and buy 100 shares. I am more bullish on the price going up now after a second look. The risk is not much higher and the reward for holding shares is so much more. One covered call at the money is worth the two put I sold to open.
I will wait and see if my shares of $NIB will be taken away in my covered call trade. Then I will look into buying 100 shares of JO
Premium collected so far: $130.13
That’s 26 cups worth of Starbucks coffee!
Warning! This is not a trade recommendation. If you copy my trades – you will lose money.