Diary | 3/3/2020 | /GC Spread
Updated
Justification:
Directional Play: Short delta. Long-term I think gold could go higher, but it seems extended here and IV is high.
Technical: Above 261.8% extension.
Fundamental: Fed just made an emergency cut; spending sees loss in momentum, but consumer fundamentals in a good place; goods trade deficit contracted; manufacturing business outlook recently rose to it's highest levels, but virus and future trade issues may cause a hit; housing market hot as home building permits rise to highest levels; debt levels declining; world supply chains at risk due to this virus thing; global yields have generated massive inflows in passive indices that are heavily weighted towards a few stocks; insane speculation in the derivatives market.
If/Then:
Take profit? 50% of credit received
Where will you hedge? $1800
Strategy Details:
Short and Long leg: $1800, $1820
Short Leg Delta: 0.08
Duration: March 6
Disclaimer:
This is a page where I look to share knowledge and keep track of trades. If questions, concerns, or suggestions, feel free to comment. I think everyone can improve (myself especially), so if you see something wrong, speak up.
Directional Play: Short delta. Long-term I think gold could go higher, but it seems extended here and IV is high.
Technical: Above 261.8% extension.
Fundamental: Fed just made an emergency cut; spending sees loss in momentum, but consumer fundamentals in a good place; goods trade deficit contracted; manufacturing business outlook recently rose to it's highest levels, but virus and future trade issues may cause a hit; housing market hot as home building permits rise to highest levels; debt levels declining; world supply chains at risk due to this virus thing; global yields have generated massive inflows in passive indices that are heavily weighted towards a few stocks; insane speculation in the derivatives market.
If/Then:
Take profit? 50% of credit received
Where will you hedge? $1800
Strategy Details:
Short and Long leg: $1800, $1820
Short Leg Delta: 0.08
Duration: March 6
Disclaimer:
This is a page where I look to share knowledge and keep track of trades. If questions, concerns, or suggestions, feel free to comment. I think everyone can improve (myself especially), so if you see something wrong, speak up.
Trade closed: target reached
Closed at 0.50DB.
This is a page where I look to share knowledge and keep track of trades. If questions, concerns, or suggestions, feel free to comment. I think everyone can improve (myself especially), so if you see something wrong, speak up.
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